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Purchase And Assumption Agreement - FLAGSTAR BANCORP INC - 11-9-2011

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					                                                                   Exhibit 2.1
                                                             EXECUTION COPY

   PURCHASE AND ASSUMPTION AGREEMENT

                       dated as of

                      July 26, 2011 

                     by and among

               FLAGSTAR BANK, FSB,

      PNC BANK, NATIONAL ASSOCIATION,

                          and

             FLAGSTAR BANCORP, INC.,

solely with respect to Sections 7.6 and 7.9 and Article 12
                                                  TABLE OF CONTENTS
  
                                                                                               Page  

ARTICLE 1         CERTAIN DEFINITIONS                                                              1  
    1.1.    Certain Definitions                                                                    1  
    1.2.    Accounting Terms                                                                       10  
ARTICLE 2           THE P&A TRANSACTION                                                            11  
    2.1.       Purchase and Sale of Assets                                                         11  
    2.2.       Assumption of Liabilities                                                           11  
    2.3.       Purchase Price                                                                      12  
    2.4.       Assumption of IRA and Keogh Account Deposits                                        12  
ARTICLE 3             CLOSING PROCEDURES; ADJUSTMENTS                                              13  
    3.1.       Closing                                                                             13  
    3.2.       Payment at Closing                                                                  13  
    3.3.       Adjustment of Purchase Price                                                        14  
    3.4.       Proration; Other Closing Date Adjustments                                           14  
    3.5.       Seller Deliveries                                                                   15  
    3.6.       Purchaser Deliveries                                                                16  
    3.7.       Owned Real Property Filings                                                         17  
    3.8.       Allocation of Purchase Price                                                        17  
ARTICLE 4            TRANSITIONAL MATTERS                                                          18  
    4.1.       Transitional Arrangements                                                           18  
    4.2.       Customers                                                                           18  
    4.3.       Direct Deposits                                                                     19  
    4.4.       Direct Debits                                                                       20  
    4.5.       Access to Records                                                                   20  
    4.6.       Interest Reporting and Withholding                                                  21  
    4.7.       Negotiable Instruments                                                              21  
    4.8.       ATM/Debit Cards; POS Cards                                                          21  
    4.9.       Data Processing Conversion for the Branches and Handling of Certain Items           22  
    4.10.      Employee Training                                                                   23  
    4.11.      Expenses Relating to Transitional Matters                                           24  
    4.12.      New Deposit Account Procedures                                                      24  
ARTICLE 5             REPRESENTATIONS AND WARRANTIES OF SELLER                                     24  
    5.1.       Corporate Organization and Authority                                                24  
    5.2.       No Conflicts                                                                        24  
    5.3.       Approvals and Consents                                                              25  
    5.4.       Leases                                                                              25  
    5.5.       Litigation and Undisclosed Liabilities                                              25  
    5.6.       Regulatory Matters                                                                  26  
    5.7.       Compliance with Laws                                                                26  
    5.8.       Records                                                                             26  
    5.9.       Title to Assets                                                                     26  
    5.10.      Deposits                                                                            27  
    5.11.      Environmental Laws; Hazardous Substances                                            27  
     5.12.       Brokers’ Fees                                            27  
     5.13.       Property                                                 27  
     5.14.       Absence of Certain Changes or Events                     28  
     5.15.       Employee Benefit Plans; Labor Matters                    29  
     5.16.       Available Funds                                          30  
     5.17.       Post-Closing Condition                                   30  
     5.18.       Limitations on Representations and Warranties            30  

ARTICLE 6              REPRESENTATIONS AND WARRANTIES OF PURCHASER        30  
    6.1.         Corporate Organization and Authority                     30  
    6.2.         No Conflicts                                             31  
    6.3.         Approvals and Consents                                   31  
    6.4.         Regulatory Matters                                       31  
    6.5.         Litigation and Undisclosed Liabilities                   32  
    6.6.         Operation of the Branches                                32  
    6.7.         Brokers’ Fees                                            32  
    6.8.         Limitations on Representations and Warranties            32  

ARTICLE 7              COVENANTS OF THE PARTIES                           32  
    7.1.         Activity in the Ordinary Course                          32  
    7.2.         Access and Confidentiality                               34  
    7.3.         Regulatory Approvals                                     36  
    7.4.         Consents                                                 37  
    7.5.         Efforts to Consummate; Further Assurances                38  
    7.6.         Non-Solicitation/Non-Competition                         38  
    7.7.         Insurance                                                40  
    7.8.         Change of Name, Etc.                                     40  
    7.9.         Exclusive Dealing                                        41  
    7.10.        Option Branch Lease Agreements                           42  
    7.11.        Treasury Management Agreements                           42  

ARTICLE 8              TAXES AND EMPLOYEE BENEFITS                        42  
    8.1.         Proration of Taxes                                       42  
    8.2.         Sales and Transfer Taxes                                 42  
    8.3.         Information Returns                                      42  
    8.4.         Payment of Amount Due under Article 8                    42  
    8.5.         Assistance and Cooperation                               42  
    8.6.         Tax Treatment of Indemnification Payments                43  
    8.7.         Transferred Employees                                    43  

ARTICLE 9         CONDITIONS TO CLOSING                                   46  
    9.1.     Conditions to Obligations of Purchaser                       46  
    9.2.     Conditions to Obligations of Seller                          47  

ARTICLE 10          TERMINATION                                           48  
    10.1.     Termination                                                 48  
    10.2.     Effect of Termination                                       49  

ARTICLE 11         INDEMNIFICATION                                        49  
    11.1.     Indemnification                                             49  
  
                                                                 ii
     11.2.       Exclusivity                                     53  
     11.3.       A s-Is Sale;   Waiver of Warranties             53  

ARTICLE 12           MISCELLANEOUS                               53  
    12.1.     Survival                                           53  
    12.2.     Assignment                                         54  
    12.3.     Binding Effect                                     54  
    12.4.     [Reserved.]                                        54  
    12.5.     Public Notice                                      54  
    12.6.     Notices                                            55  
    12.7.     Expenses                                           55  
    12.8.     Governing Law                                      55  
    12.9.     Waiver of Jury Trial                               56  
    12.10.     Entire Agreement; Amendment                       56  
    12.11.     Third-Party Beneficiaries                         56  
    12.12.     Counterparts                                      56  
    12.13.     Headings                                          56  
    12.14.     Severability                                      56  
    12.15.     Interpretation                                    56  
    12.16.     Specific Performance                              57  
  
                                                       iii
                                                      List of Schedules
  
Schedule 1.1(a)         Assumed Contracts
Schedule 1.1(b)         Deposits
Schedule 1.1(c)         Excluded Deposits
Schedule 1.1(d)         Net Book Value of Assets
Schedule 1.1(e)         Option Branches
Schedule 1.1(f)         Personal Property
Schedule 1.1(g)         Personal Property Leases
Schedule 1.1(h)         Purchased Branches
Schedule 1.1(i)         Seller’s Knowledge
Schedule 2.4(c)         Excluded IRA/Keogh Account Deposits
Schedule 3.5(b)         Form of Bill of Sale
Schedule 3.5(c)         Form of Assignment and Assumption Agreement
Schedule 3.5(d)         Form of Assignment of Branch Lease and Assumption Agreement
Schedule 3.5(e)         Form of Assignment of Tenant Lease and Assumption Agreement
Schedule 3.5(f)         Form of Assignment of Assumed Contracts and Assumption Agreement
Schedule 4.9            Schedule of Processing Fees
Schedule 7.4(b)-1       Estoppel Certificate – Branch Lease
Schedule 7.4(b)-2       Estoppel Certificate – Tenant Lease
Schedule 7.4(c)         Form of Subordination, Attornment and Non-Disturbance Agreement
Schedule 7.10           Option Branch Lease Agreement Term Sheet
  
                                                              iv
      This PURCHASE AND ASSUMPTION AGREEMENT , dated as of July 26, 2011 (this “ Agreement ”), by and among
Flagstar Bank, FSB, a federal chartered stock savings bank, organized under the laws of the United States, with its principal
office located in Troy, Michigan (“ Seller ”), PNC Bank, National Association, a national banking association, organized under
the laws of the United States, with its principal office located in Pittsburgh, Pennsylvania (“ Purchaser ”), and Flagstar Bancorp,
Inc., a Michigan corporation (“ FBC ”), solely with respect to Sections 7.6 and 7.9 and Article 12.

                                                            RECITALS

      WHEREAS, Purchaser desires to acquire from Seller, and Seller desires to transfer to Purchaser, certain banking operations
in the State of Georgia, in accordance with and subject to the terms and conditions of this Agreement.

     NOW, THEREFORE , in consideration of the premises and the mutual promises and obligations set forth herein, the
parties agree as follows:


                                                           ARTICLE 1

                                                    CERTAIN DEFINITIONS

     1.1. Certain Definitions . The terms set forth below are used in this Agreement with the following meanings:
          “ Accrued Interest ” means, as of any date, with respect to a Deposit, interest which is accrued on such Deposit to
     but excluding such date and not yet posted to the relevant deposit account.
          “ ACH ” has the meaning set forth in Section 4.3. 
          “ ACH Direct Deposit Cut-Off Date ” has the meaning set forth in Section 4.3. 
          “ Acquiring Person ” has the meaning set forth in Section 7.6(a). 
         “ Adjusted Payment Amount ” means (x) the aggregate balance (including Accrued Interest) of the Deposits assumed 
     by Purchaser pursuant to Section 2.2, minus (y) the Purchase Price, each as set forth on the Final Closing Statement. 
           “ Affiliate ” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or
     under common control with such Person; provided that for purposes of this Agreement, BlackRock, Inc. and its
     subsidiaries shall not be deemed to be Affiliates of Purchaser, and MatlinPatterson and MP Thrift Investments, L.P. and
     their Affiliates (but excluding Seller, FBC and their subsidiaries) shall not be deemed to be Affiliates of Seller.
          “ Agreement ” means this Purchase and Assumption Agreement, including all schedules, exhibits and addenda, each
     as amended from time to time in accordance with Section 12.10(b). 
          “ Assets ” has the meaning set forth in Section 2.1(a). 
          “ Assignment and Assumption Agreement ” has the meaning set forth in Section 3.5(c). 
          “ Assumed Contract Assignments ” has the meaning set forth in Section 3.5(f).
          “ Assumed Contracts ” means each of the contracts set forth on Schedule 1.1(a) and any contracts entered into by
     Seller in accordance with Section 7.1 to the extent exclusively related to the operations of the Branches; provided that no
     contract entered into by Seller in accordance with Section 7.1 shall be an “Assumed Contract” unless expressly agreed to
     by Purchaser. Schedule 1.1(a) shall be updated by Seller as of October 31, 2011 (and delivered to Purchaser on or before 
     November 2, 2011) and as of the date that is three (3) calendar days prior to the Closing Date (and delivered to Purchaser 
     on or before the Closing Date).
          “ Assumed Liabilities ” has the meaning set forth in Section 2.2(a). 
          “ Atlanta MSA ” means the Atlanta-Sandy Springs-Marietta, GA Metropolitan Statistical Area, as defined in the
     United States Office of Management and Budget Bulletin No. 10-02, dated December 1, 2009. 
          “ Benefit Plan ” means each employee benefit plan, program or other arrangement that is sponsored or maintained by
     Seller or any of its Affiliates or to which Seller or any of its Affiliates contributes or is obligated to contribute, including
     any employee welfare benefit plan within the meaning of Section 3(1) of ERISA, any employee pension benefit plan within 
     the meaning of Section 3(2) of ERISA (whether or not such plan is subject to ERISA) and any bonus, incentive, 
     commission, compensation, deferred compensation, vacation, stock purchase, stock option, severance, employment,
     change of control or fringe benefit plan, agreement, program or policy.
          “ Branch Employees ” means the employees of Seller or its Affiliates employed at the Branches on the Closing Date
     (including any employees who are Leave Recipients) and listed on Schedule 5.15(a)(i) of the Seller Disclosure Schedule.
          “ Branch Lease Assignments ” has the meaning set forth in Section 3.5(d). 
          “ Branch Lease Security Deposit ” means any security deposit held by the lessor under a Branch Lease.
         “ Branch Leases ” means the leases under which Seller leases land and/or buildings used as Branches, including
     ground leases, together with the real property interests, and any and all other rights, granted thereunder to Seller.
          “ Branches ” means, collectively, the Purchased Branches and the Option Branches, and “ Branch ” refers to each
     such Branch or any one of the Branches.
  
                                                                  2
         “ Business Day ” means a day on which banks are generally open for business in Pittsburgh, Pennsylvania or Troy,
     Michigan, and which is not a Saturday or Sunday.
          “ Cash on Hand ” means, as of any date, all petty cash, vault cash, teller cash, ATM cash, coin counter cash and
     prepaid postage held at a Branch.
          “ Closing ” and “ Closing Date ” refer to the closing of the P&A Transaction, which is to be held on such date as
     provided in Article 3 and which shall be deemed to be effective at 5:00 p.m., New York City time, on such date.
          “ Code ” means the Internal Revenue Code of 1986, as amended.
          “ Controlling Party ” has the meaning set forth in Section 11.1(g). 
          “ Cut-off Date ” means the date that is forty-five calendar days after the date of this Agreement.
          “ Deposit(s) ” means deposit liabilities with respect to deposit accounts (a) booked by Seller at the Branches and 
     (b) which (i) have been opened by a customer of Seller at the Branches or (ii) a customer of Seller has requested be 
     transferred to the Branches, as of the close of business on the Closing Date, that constitute “deposits” for purposes of the
     Federal Deposit Insurance Act, 12 U.S.C. § 1813, including collected and uncollected deposits and Accrued Interest, but 
     excluding (1) any Excluded IRA/Keogh Account Deposits, (2) any Excluded Deposits and (3) any liabilities which, 
     notwithstanding Section 7.4, are not transferable pursuant to applicable law or regulation. Schedule 1.1(b) contains a 
     complete and accurate list of Deposits as of June 30, 2011 with such schedule (A) specifying the identity of the 
     accountholder and the type of account for each Deposit and (B) including a copy of the general terms and conditions 
     governing each category of Deposits, and such list shall be updated, as mutually agreed to by Seller and Purchaser, as of
     the Cut-off Date (and delivered to Purchaser within two (2) calendar days of the Cut-off Date) and as of the date that is
     three (3) calendar days prior to the Closing Date (and delivered to Purchaser on or before the Closing Date). 
          “ Direct Claim ” has the meaning set forth in Section 11.1(c). 
          “ Draft Allocation Statement ” has the meaning set forth in Section 3.8(a). 
          “ Draft Closing Statement ” means a draft closing statement, prepared by Seller and in a form mutually agreed to by
     the parties, as of the close of business on the third (3rd) Business Day preceding the Closing Date setting forth Seller’s
     reasonable estimated calculation of both the Purchase Price and the Estimated Payment Amount.
          “ Employment Agreement ” has the meaning set forth in Section 5.15(a). 
         “ Encumbrances ” means all mortgages, claims, charges, liens, encumbrances, easements, limitations, restrictions,
     commitments and security interests, ordinances, restrictions, requirements, resolutions, laws or orders of any
     governmental authority now or hereafter acquiring jurisdiction over the Assets, and all amendments or additions
  
                                                                 3
     thereto in force as of the date of this Agreement or in force as of the Closing Date, and other matters now of public record
     relating to the Real Property, except for statutory liens securing Taxes and/or other payments not yet due, liens incurred in
     the ordinary course of business, including liens in favor of mechanics or materialmen, and any such matters as do not
     materially and adversely affect the current use of the properties or assets subject thereto or affected thereby or which
     otherwise do not materially impair the business operations at such properties and except for obligations pursuant to
     applicable escheat and unclaimed property laws relating to the Escheat Deposits and except for Encumbrances listed in
     any title policy with respect to Purchased Branches that are accepted by Purchaser.
          “ Enforcement Action ” has the meaning set forth in Section 5.6(c). 
           “ Environmental Law ” means any Federal, state, or local law, statute, rule, regulation, code, order, judgment, decree,
     injunction or agreement with any Federal, state, or local governmental authority, (a) relating to the protection, preservation 
     or restoration of the environment (including air, water vapor, surface water, groundwater, drinking water supply, surface
     land, subsurface land, plant and animal life or any other natural resource) or to human health or safety or (b) the exposure 
     to, or the use, storage, recycling, treatment, generation, transportation, processing, handling, labeling, production, release
     or disposal of hazardous substances, in each case as amended and now in effect. Environmental Laws include the Clean
     Air Act (42 U.S.C. §7401 et seq .); the Comprehensive Environmental Response Compensation and Liability Act (42 U.S.C.
     §9601 et seq .); the Resource Conservation and Recovery Act (42 U.S.C. §6901 et seq .); the Federal Water Pollution
     Control Act (33 U.S.C. §1251 et seq .); and the Occupational Safety and Health Act (29 U.S.C. §651 et seq .).
          “ ERISA ” means the Employee Retirement Income Security Act of 1974, as amended, and the rules, regulations and
     class exemptions of the U.S. Department of Labor thereunder.
           “ Escheat Deposits ” means, as of any date, Deposits and safe deposit box contents, in each case held on such date
     at the Branches which become subject to escheat, on or prior to June 30, 2012, to any governmental authority pursuant to 
     applicable escheat and unclaimed property laws.
          “ Estimated Payment Amount ” means (x) the aggregate balance (including Accrued Interest) of the Deposits 
     assumed by Purchaser pursuant to Section 2.2, minus (y) the Estimated Purchase Price, each as set forth on the Draft 
     Closing Statement as reasonably agreed upon prior to the Closing by Seller and Purchaser.
          “ Estimated Purchase Price ” means the Purchase Price as set forth on the Draft Closing Statement.
           “ Excluded Deposits ” means (x) those deposit liabilities that are or would be considered CDARS (Certificate of 
     Deposit Account Registry Service), any of which, as of the date hereof, are listed on Schedule 1.1(c), (y) any deposit 
     liabilities that constitute security for loans (whether held in escrow or otherwise) and (z) Escheat Deposits. 
  
                                                                 4
          “ Excluded IRA/Keogh Account Deposits ” has the meaning set forth in Section 2.4(c). 
          “ Excluded Liabilities ” has the meaning set forth in Section 2.2(b). 
           “ Excluded Taxes ” means (i) any Taxes of Seller or any of its Affiliates for or applicable to any period, (ii) any Taxes 
     of, or relating to, the Assets, the Assumed Liabilities or the operation of the Branches for, or applicable to, the Pre-Closing
     Tax Period, and (iii) any Transfer Taxes for which Seller is responsible pursuant to Section 8.2. 
          “ FDIC ” means the Federal Deposit Insurance Corporation.
          “ Federal Funds Rate ” on any day means the per annum rate of interest (rounded upward to the nearest 1/100 of 1%)
     which is the weighted average of the rates on overnight federal funds transactions arranged on such day or, if such day is
     not a Business Day, the previous Business Day, by federal funds brokers computed and released by the Federal Reserve
     Bank of New York (or any successor) in substantially the same manner as such Federal Reserve Bank currently computes
     and releases the weighted average it refers to as the “Federal Funds Effective Rate” at the date of this Agreement.
          “ Federal Reserve Board ” means the Board of Governors of the Federal Reserve System.
          “ FedWire Direct Deposit Cut-Off Date ” has the meaning set forth in Section 4.3. 
          “ Final Allocation Statement ” has the meaning set forth in Section 3.8(a). 
          “ Final Closing Statement ” means a final closing statement, prepared by Seller in accordance with the accounting
     policies used in preparing the Draft Closing Statement, on or before the thirtieth (30th) calendar day following the Closing 
     Date setting forth both the Purchase Price and the Adjusted Payment Amount.
          “ GAAP ” has the meaning set forth in Section 1.2. 
          “ Hazardous Substance ” means any substance, whether liquid, solid or gas (a) listed, identified or designated as 
     hazardous or toxic; (b) which, applying criteria specified in any Environmental Law, is hazardous or toxic; or (c) the use or 
     disposal, or any manner or aspect of management or handling, of which is regulated under Environmental Law.
          “ IRA ” means an “individual retirement account” or similar account created by a trust for the exclusive benefit of any
     individual or his beneficiaries in accordance with the provisions of Section 408 of the Code. 
  
                                                                  5
          “ IRS ” means the Internal Revenue Service.
         “ Item ” means checks, drafts, negotiable orders of withdrawal and items of a like kind which are drawn on or
     deposited and credited to the Deposit accounts.
         “ Keogh Account ” means an account created by a trust for the benefit of employees (some or all of whom are owner-
     employees) and that complies with the provisions of Section 401 of the Code. 
          “ Leased Real Property ” means Real Property leased by Seller and used for Branches.
          “ Leave Recipient ” has the meaning set forth in Section 8.7(a)(ii). 
           “ Loss ” means the amount of (i) losses, (ii) liabilities, (iii) damages and (iv) reasonable expenses actually incurred by 
     the indemnified party or its Affiliates in connection with the matters described in Section 11.1, less the amount of the 
     economic benefit (if any) to the indemnified party or its Affiliates actually realized thereby in connection with any such
     damage, loss, liability or expense (including net Tax benefits obtainable under applicable law, amounts recovered under
     insurance policies net of deductibles, recovery by setoffs or counterclaims, and other economic benefits).
          “ Material Adverse Effect ” means (a) with respect to Seller, a material adverse effect on (i) the business or results of 
     operations or financial condition of the Branches, the Assets and the Assumed Liabilities, taken as a whole (excluding any
     effect to the extent resulting from (A) changes, after the date hereof, in generally accepted accounting principles or 
     regulatory accounting requirements applicable to banks or savings associations and their holding companies generally,
     (B) changes, after the date hereof, in laws, rules or regulations of general applicability or interpretations thereof by courts 
     or governmental agencies or authorities, (C) changes, after the date hereof, in global or national political conditions or in 
     general U.S. or global economic or market conditions affecting banks or their holding companies generally (including
     general changes in interest or exchange rates or in credit availability and liquidity), (D) public disclosure of this Agreement, 
     including the impact thereof on customers, suppliers, licensors and employees and others having business relationships
     with the Branches, (E) the commencement, occurrence, continuation or intensification of any war, sabotage, armed 
     hostilities or acts of terrorism not directly involving or impacting the Assets or the Assumed Liabilities, or (F) actions by 
     Purchaser or Seller taken pursuant to the express requirements of this Agreement; provided that such matters in clauses
     (A), (B), (C) and (E) shall not be excluded to the extent that they have a disproportionate adverse effect on the Branches, 
     the Assets and Assumed Liabilities, taken as a whole, relative to other banks operating in the same geographic market as
     the Branches), or (ii) the ability of Seller or FBC to perform any of its financial or other obligations under this Agreement, 
     including the ability of Seller to timely consummate the P&A Transaction as contemplated by this Agreement, and (b) with 
     respect to Purchaser, a material adverse effect on the ability of Purchaser to perform any of its financial or other obligations
     under this Agreement, including the ability of Purchaser to timely consummate the P&A Transaction as contemplated by
     this Agreement.
  
                                                                  6
          “ Net Book Value ” means the carrying value of each of the Assets as reflected on the books of Seller in accordance
     with GAAP and consistent with the accounting policies and practices of Seller in effect as of the date of this Agreement.
     The components used in calculating the Net Book Value of the Assets in accordance with the standards set forth in the
     preceding sentence are set forth on Schedule 1.1(d).
           “ New Plans ” means any employee benefit plans of Purchaser that provide benefits to any Transferred Employee
     after the Transfer Date.
          “ Non-Controlling Party ” has the meaning set forth in Section 11.1(g). 
          “ OCC ” means the Office of the Comptroller of the Currency.
          “ Option Branch Lease Agreements ” has the meaning set forth in Section 7.10. 
          “ Option Branches ” means the banking offices of Seller at the locations identified on Schedule 1.1(e).
          “ Order ” has the meaning set forth in Section 9.1(b). 
          “ Owned Real Property ” means Real Property owned by Seller and used for Branches or on which the Branches are
     located, together with any improvements thereto.
          “ P&A Transaction ” means the purchase and sale of Assets and the assumption of Assumed Liabilities described in
     Sections 2.1 and 2.2.
           “ Person ” means any individual, corporation, company, partnership (limited or general), limited liability company,
     joint venture, association, trust or other business entity.
          “ Personal Property ” means all of the personal property goods of Seller located in the Branches and used or held for
     use in the business or operation of the Branches consisting of the trade fixtures, shelving, furniture, leasehold
     improvements, on-premises ATMs (excluding Seller licensed software), equipment, security systems, safe deposit boxes
     (exclusive of contents), vaults and sign structures (exclusive of signage containing any trade name, trade dress, trademark
     or service mark, if any, of Seller or any of its Affiliates) that are set forth on Schedule 1.1(f). Prior to the Closing, Schedule
     1.1(f) may be updated only if such updates are expressly agreed to by Purchaser.
          “ Personal Property Leases ” means the leases under which Seller leases certain Personal Property in the Branches
     that would be “Personal Property”, and which lease agreement relates only to one or more of the Branches and not to any
     other facilities of Seller or its Affiliates. Schedule 1.1(g) contains a complete and accurate list of the Personal Property
     Leases as of June 30, 2011 and such list shall be updated by Seller as of October 31, 2011 (and delivered to Purchaser on or 
     before November 2, 2011) and as of a date that is three (3) calendar days prior to the Closing Date (and delivered to 
     Purchaser on or before the Closing Date).
  
                                                                    7
          “ POS ” has the meaning set forth in Section 4.8. 
          “ Post-Closing Processing Period ” has the meaning set forth in Section 4.2(c). 
           “ Post-Closing Tax Period ” means a taxable period or portion thereof that begins immediately after the Closing Date;
     if a taxable period begins on or prior to the Closing Date and ends after the Closing Date, then the portion of the taxable
     period that begins immediately after the Closing Date shall constitute the Post-Closing Tax Period.
           “ Pre-Closing Tax Period ” means a taxable period or portion thereof that ends on or prior to the Closing Date; if a
     taxable period begins on or prior to the Closing Date and ends after the Closing Date, then the portion of the taxable period
     that ends on and includes the Closing Date shall constitute the Pre-Closing Tax Period.
          “ Property Taxes ” means real, personal, and intangible ad valorem property Taxes.
          “ Purchase Price ” has the meaning set forth in Section 2.3. 
          “ Purchased Branches ” means the banking offices of Seller at the locations identified on Schedule 1.1(h).
          “ Purchaser Taxes ” has the meaning set forth in Section 11.1(g). 
          “ Real Property ” means the parcels of real property on which the Branches are located, including any improvements
     thereon (which, for the avoidance of doubt, shall not include any signage containing any trade name, trade dress,
     trademark or service mark, if any, of Seller or any of its Affiliates) and any easements, concessions, licenses or similar
     rights appurtenant thereto, which Schedule indicates whether or not such real property is Owned Real Property or Leased
     Real Property.
           “ Records ” means all records and original documents, or where reasonable, appropriate copies thereof, in Seller’s
     possession or control that pertain to and are used by Seller to administer, reflect, monitor, evidence or record information
     respecting the business or conduct of the Branches (including transaction tickets through the Closing Date and all records
     for closed accounts located in Branches and excluding any other transaction tickets and records for closed accounts) and
     all such records and original documents, or where reasonable and appropriate copies thereof, regarding the Assets, or the
     Deposits, including customer lists and all such records maintained in a network (including any remote location) or on
     electronic or magnetic media in the electronic database system of Seller reasonably accessible by Branch, or to comply
     with the applicable laws and governmental regulations to which the Deposits are subject, including applicable unclaimed
     property and escheat laws; provided , however , that Records shall not include general books of account and books of
     original entry that comprise Seller’s permanent tax records, the books and records that Seller is required to retain pursuant
     to any applicable law or order and the books and records related
  
                                                                8
     exclusively to the Excluded Assets or the Excluded Liabilities or personnel records that Seller is required by law to retain;
     and provided ,further , that Purchaser shall be entitled to receive copies of the items set forth in the preceding proviso to
     the extent information set forth therein relates to the Branches, the Assets or the Assumed Liabilities with Purchaser being
     responsible for any documented, out-of-pocket third party costs reasonably incurred by Seller in connection with
     furnishing such copies.
         “ Regulatory Approvals ” means the approval of the OCC and any other Regulatory Authority required to
     consummate the P&A Transaction.
          “ Regulatory Authority ” means any federal or state banking, other regulatory, self-regulatory or enforcement
     authority or any court, administrative agency or commission or other governmental authority or instrumentality.
          “ Returned Items ” has the meaning set forth in Section 4.9(c). 
          “ Safe Deposit Agreements ” means the agreements relating to safe deposit boxes located in the Branches.
         “ Seller Disclosure Schedule ” means the disclosure schedule of Seller delivered to Purchaser in connection with the
     execution and delivery of this Agreement.
          “ Seller Taxes ” has the meaning set forth in Section 11.1(g). 
          “ Seller’s IP ” has the meaning set forth in Section 4.2(c). 
          “ Seller’s knowledge ” or other similar phrases means information that is actually known, after reasonable inquiry, to
     the Persons set forth on Schedule 1.1(i).
          “ Straddle Period ” means any taxable period beginning on or prior to and ending after the Closing Date.
          “ Survival Period ” has the meaning set forth in Section 12.1(a). 
          “ Target Entity ” has the meaning set forth in Section 7.6(a). 
          “ Tax Claim ” has the meaning set forth in Section 11.1(g). 
           “ Tax Returns ” means any report, return, declaration, statement, claim for refund, information return or statement
     relating to Taxes or other information or document required to be supplied to a taxing authority in connection with Taxes,
     including any schedule or attachment thereto, and including any amendment thereof.
          “ Taxes ” means all taxes, charges, fees, levies or other like assessments, including income, gross receipts, excise, real
     and personal and intangible property, sales, use, transfer (including transfer gains taxes), withholding, license, payroll,
     recording, ad valorem and franchise taxes, whether computed on a separate or consolidated, unitary or combined basis or
     in any other manner, whether disputed or not and including any
  
                                                                  9
     obligation to indemnify or otherwise assume or succeed to the tax liability of another Person, imposed by the United
     States, or any state, local or foreign government or subdivision or agency thereof and such term shall include any interest,
     penalties or additions to tax attributable to such assessments.
          “ Tenant Assignments ” has the meaning set forth in Section 3.5(e). 
          “ Tenant Leases ” means leases, subleases, licenses or other use agreements between Seller and tenants with respect
     to Real Property, if any.
          “ Tenant Security Deposit ” means any security deposit held by Seller with respect to a Tenant Lease.
          “ Third Party Claim ” has the meaning set forth in Section 11.1(d). 
          “ Title Insurance ” has the meaning set forth in Section 3.5(m). 
          “ Title Policy ” has the meaning set forth in Section 3.5(m). 
          “ Transaction Account ” means any account at a Branch in respect of which deposits therein are withdrawable in
     practice upon demand or upon which third party drafts may be drawn by the depositor, including checking accounts,
     negotiable order of withdrawal accounts and money market deposit accounts.
           “ Transfer Date ” means the date of active commencement of a Branch Employee’s employment with Purchaser or one
     of its Affiliates, as applicable.
          “ Transfer Taxes ” has the meaning set forth in Section 8.2. 
          “ Transferred Employees ” has the meaning set forth in Section 8.7(a)(i). 
           “ WARN Act ” means the Worker Adjustment and Retraining Notification Act of 1988, as amended, and any similar
     state or local laws.

     1.2. Accounting Terms . All accounting terms not otherwise defined herein shall have the respective meanings assigned to
them in accordance with consistently applied generally accepted accounting principles as in effect from time to time in the
United States of America (“ GAAP ”).
  
                                                                 10
                                                            ARTICLE 2

                                                    THE P&A TRANSACTION

      2.1. Purchase and Sale of Assets . (a) Subject to the terms and conditions set forth in this Agreement, at the Closing, Seller 
shall grant, sell, convey, assign, transfer and deliver to Purchaser, and Purchaser shall purchase and accept from Seller, all of
Seller’s right, title and interest, as of the Closing Date, in and to the following (collectively, the “ Assets ”):
               (i) the Owned Real Property with respect to the Purchased Branches;
               (ii) the Personal Property;
               (iii) the Branch Leases and Tenant Leases;
               (iv) the Branch Lease Security Deposits;
               (v) the Assumed Contracts;
               (vi) the Cash on Hand;
               (vii) the Safe Deposit Agreements;
              (viii) any refunds, credits or other receivables, in each case, of, against or relating to Taxes (other than Excluded
          Taxes); and
               (ix) the Records.

           (b) Purchaser agrees and acknowledges that it is purchasing only the Assets (and assuming only the Assumed
Liabilities) specified in this Agreement and, except as may be expressly provided for in this Agreement, Purchaser is not hereby
acquiring any interest in or right to any business relationship which Seller or its Affiliates may have with any customer of the
Branches that is not contemplated hereby. Each party agrees and acknowledges that no loans, credit card relationships, net
operating losses, trust and custody relationships, or brokerage or investment management relationships are being sold hereby.
Further, except as contemplated by Section 7.8, no right to the use of any trade name, trade dress, trademark or service mark, if 
any, of Seller, FBC or any of their respective Affiliates, is being sold, licensed or otherwise transferred hereby.

     2.2. Assumption of Liabilities . (a) Subject to the terms and conditions set forth in this Agreement, at the Closing, 
Purchaser shall assume, pay, perform and discharge the following duties, responsibilities, obligations and liabilities of Seller to
be discharged, performed, satisfied or paid on or after the Closing Date (or the Transfer Date with respect to a Transferred
Employee) with respect to the following (collectively, the “ Assumed Liabilities ”):
               (i) the Deposits, including IRA and Keogh Accounts to the extent contemplated by Section 2.4; 
  
                                                                 11
              (ii) the performance of contractual obligations under the Personal Property Leases, Branch Leases, Tenant
          Leases, Safe Deposit Agreements and Assumed Contracts;
               (iii) Tenant Security Deposits;
               (iv) the Owned Real Property with respect to the Purchased Branches; and
              (v) liabilities for Taxes of, or relating to, the Assets, the Assumed Liabilities or the business or operation of the
          Branches, for any Post-Closing Tax Period.

           (b) Other than the Assumed Liabilities expressly assumed hereunder pursuant to Section 2.2(a), Purchaser shall not 
assume or be bound by any duties, responsibilities, obligations or liabilities, including those of Seller or of any of Seller’s
Affiliates, of any kind or nature, known, unknown, contingent or otherwise (the “ Excluded Liabilities ”).

     2.3. Purchase Price . The purchase price (“ Purchase Price ”) for the Assets shall be the sum of:

          (a) The aggregate Net Book Value of all the Assets, other than Cash on Hand; and

          (b) The aggregate amount of Cash on Hand as of the Closing Date.

     2.4. Assumption of IRA and Keogh Account Deposits . (a) With respect to Deposits in IRAs, Seller will use commercially 
reasonable efforts and will cooperate with Purchaser in taking any action reasonably necessary to accomplish either the
appointment of Purchaser as successor custodian or the delegation to Purchaser (or to an Affiliate of Purchaser) of Seller’s
authority and responsibility as custodian of all such IRA deposits (except self-directed IRA deposits), including sending to the
depositors thereof appropriate notices, cooperating with Purchaser (or such Affiliate) in soliciting consents from such
depositors, and filing any appropriate applications with applicable Regulatory Authorities. If any such delegation is made to
Purchaser (or such Affiliate), Purchaser (or such Affiliate) will perform all of the duties so delegated and comply with the terms
of Seller’s agreement with the depositor of the IRA deposits affected thereby.

          (b) With respect to Deposits in Keogh Accounts, Seller shall promptly use commercially reasonable efforts and
cooperate with Purchaser to invite depositors thereof to direct a transfer of each such depositor’s Keogh Account and the
related Deposits to Purchaser (or an Affiliate of Purchaser), as trustee thereof, and to adopt Purchaser’s (or such Affiliate’s)
form of Keogh Master Plan as a successor to that of Seller. Purchaser (or such Affiliate) will not be required to assume a Keogh
Account unless Purchaser (or such Affiliate) has received the documents necessary for such assumption at or before the
Closing. With respect to any owner of a Keogh Account who does not adopt Purchaser’s (or such affiliate’s) form of Keogh
Master Plan, Seller will use commercially reasonable efforts in order to enable Purchaser (or such Affiliate) to retain such Keogh
Accounts at the Branches.
  
                                                                 12
           (c) If, notwithstanding the foregoing, as of the Closing Date, Purchaser shall be unable to retain deposit liabilities in
respect of an IRA or Keogh Account, such deposit liabilities, which shall on or prior to the Closing Date be set forth on
Schedule 2.4(c), shall be excluded from Deposits for purposes of this Agreement and shall constitute “ Excluded IRA/Keogh
Account Deposits .” 

                                                            ARTICLE 3

                                           CLOSING PROCEDURES; ADJUSTMENTS

    3.1. Closing . (a) The Closing will be held at the offices of Purchaser at One PNC Plaza, 249 Fifth Avenue, Pittsburgh, 
Pennsylvania, or such other place as may be agreed to by the parties.

            (b) Subject to the satisfaction or, where legally permitted, the waiver of the conditions set forth in Article 9, the
Closing Date shall be on (i) December 9, 2011 (provided that such date may be delayed by Purchaser to the extent reasonably 
necessary to accommodate Purchaser’s conversion should Seller deliver the information contemplated by Section 4.1(b), 
Section 4.2(a) and Section 4.8 after the specific dates contemplated thereby) or (ii) such other mutually agreed-upon Friday that
is at least three (3) Business Days after the satisfaction or waiver (subject to applicable law) of each of the conditions set forth 
in Article 9 (other than those conditions that by their nature are to be satisfied or waived at the Closing but subject to the
satisfaction or waiver of those conditions); provided , however , that, in no event, shall the Closing Date be earlier than thirty
(30) calendar days following the date that the closing condition set forth in Section 9.1(a) shall have been satisfied. Unless the 
parties agree pursuant to Section 4.9(a) that the conversion of the data processing with respect to the Branches and Assumed 
Liabilities will be performed on a date other than the Closing Date, the Closing Date shall be a Friday and the conversion will be
completed prior to the opening of business on the following Business Day.

     3.2. Payment at Closing . (a) At the Closing, Seller shall pay to Purchaser an amount in U.S. dollars equal to the Estimated 
Payment Amount. In addition, Seller and Purchaser shall equally be responsible for the payment of any Transfer Taxes due or
incurred in connection with the transactions contemplated by this Agreement.

           (b) All payments to be made hereunder by one party to the other shall be made by wire transfer of immediately
available funds (in all cases to an account specified in writing by Seller or Purchaser, as the case may be, to the other not later
than the third (3rd) Business Day prior to the Closing Date) on or before 12:00 noon, New York City time, on the date of 
payment.

           (c) If any instrument of transfer contemplated herein shall be recorded in any public record before the Closing and
thereafter the Closing does not occur, then at the request of such transferring party the other party will deliver (or execute and
deliver) such instruments and take such other action as such transferring party shall reasonably request to revoke such
purported transfer.
  
                                                                  13
     3.3. Adjustment of Purchase Price . (a) On or before 12:00 noon, New York City time, on the thirtieth (30th) calendar day 
following the Closing Date, Seller shall deliver to Purchaser the Final Closing Statement and shall make available the work
papers, schedules and other supporting data used by Seller to calculate and prepare the Final Closing Statement to enable
Purchaser to verify the amounts set forth in the Final Closing Statement are accurate.

            (b) The determination of the Adjusted Payment Amount shall be final and binding on the parties hereto on the
thirtieth (30th) calendar day after receipt by Purchaser of the Final Closing Statement, unless Purchaser shall notify Seller in 
writing of its disagreement with any amount included therein or omitted therefrom, in which case, if the parties are unable to
resolve the disputed items within ten (10) Business Days of the receipt by Seller of notice of such disagreement, such items 
shall be determined by a nationally recognized independent accounting firm selected by mutual agreement between Purchaser
and Seller. Such accounting firm shall be instructed to resolve the disputed items within ten (10) Business Days of engagement, 
to the extent reasonably practicable. The determination of such accounting firm shall be final and binding on the parties hereto.
The fees of any such accounting firm shall be divided equally between Purchaser and Seller.

            (c) On or before 12:00 noon, New York City time, on the third (3rd) Business Day after the Adjusted Payment Amount 
shall have become final and binding or, in the case of a dispute, the date of the resolution of the dispute pursuant to Section 3.3
(b), if the Adjusted Payment Amount exceeds the Estimated Payment Amount, Seller shall pay to Purchaser an amount in dollars
equal to the amount of such excess, plus interest on such excess amount from the Closing Date to but excluding the payment
date, at the Federal Funds Rate or, if the Estimated Payment Amount exceeds the Adjusted Payment Amount, Purchaser shall
refund to Seller an amount in dollars equal to the amount of such excess, plus interest on such excess amount from the Closing
Date to but excluding the payment date, at the Federal Funds Rate. Any payments required by Section 3.4 shall be made 
contemporaneously with the foregoing payment.

     3.4. Proration; Other Closing Date Adjustments . (a) Except as otherwise specifically provided in this Agreement, it is the 
intention of the parties that Seller will operate the Branches for its own account until 5:00 p.m., New York City time, on the
Closing Date, and that Purchaser shall operate the Branches, hold the Assets and assume the Assumed Liabilities for its own
account after the Closing Date. Thus, except as otherwise specifically provided in this Agreement, certain items of income and
expense that relate to the Assets, the Deposits and the Branches shall be prorated as provided in Section 3.4(b) as of 5:00 p.m., 
New York City time, on the Closing Date. Those items being prorated will be handled at the Closing as an adjustment to the
Purchase Price, or if not able to be calculated, in the Final Closing Statement, unless otherwise agreed by the parties hereto.

            (b) For purposes of this Agreement, items of proration and other adjustments shall include: (i) rental payments under 
the Branch Leases and the Tenant Leases and periodic payments under the Assumed Contracts; (ii) Property Taxes and 
assessments; (iii) FDIC deposit insurance assessments; (iv) wages, salaries and employee compensation, benefits and 
expenses; (v) trustee or custodian fees on IRA and Keogh Accounts; (vi) to the extent relating to the Assets or the Assumed 
Liabilities, prepaid expenses and items and accrued but unpaid liabilities, as of the close of business on the Closing Date; and
(vii) safe deposit rental payments previously received by Seller. 
  
                                                                14
     3.5. Seller Deliveries . At the Closing, Seller shall deliver to Purchaser:

            (a) Limited warranty deeds and other instruments of conveyance as may be necessary to sell, transfer and convey all
right, title and interest in and to the Owned Real Property with respect to the Purchased Branches to Purchaser, free and clear of
all Encumbrances, in forms to be reasonably agreed upon by Seller and Purchaser;

          (b) A bill of sale in substantially the form of Schedule 3.5(b), pursuant to which the Personal Property shall be
transferred to Purchaser;

        (c) An assignment and assumption agreement in substantially the form of Schedule 3.5(c), with respect to the
Assumed Liabilities (the “ Assignment and Assumption Agreement ”);

          (d) Lease assignment and assumption agreements, in recordable form, in substantially the form of Schedule 3.5(d),
with respect to each of the Branch Leases (the “ Branch Lease Assignments ”);

         (e) Assignment and assumption agreements in substantially the form of Schedule 3.5(e), with respect to each of the
Tenant Leases (the “ Tenant Assignments ”);

        (f) Assignment and assumption agreements in substantially the form of Schedule 3.5(f), with respect to each of the
Assumed Contracts (the “ Assumed Contract Assignments ”);

          (g) The consent of the landlord/lessor to the assignment of the each of the Branch Leases by Seller to Purchaser;

          (h) The Option Branch Lease Agreements;

          (i) The certificate required to be delivered by Seller pursuant to Section 9.1(e); 

          (j) The Draft Closing Statement;

          (k) Seller’s resignation as trustee or custodian, as applicable, with respect to each IRA or Keogh Account included in
the Deposits and designation of Purchaser as successor trustee or custodian with respect thereto, as contemplated by
Section 2.4; 

          (l) A certificate of non-foreign status pursuant to Treasury Regulations Section 1.1445-2(b)(2) from Seller, duly
executed and acknowledged, substantially in the form of the sample certificate set forth in Treasury Regulation 1.1445-2(b)(2)(iv)
(B);

         (m) Affidavits and such other customary documentation as shall be reasonably required by a title company selected
by Purchaser and reasonably acceptable to Seller to issue
  
                                                                   15
title insurance policies (each, a “ Title Policy ,” and collectively, the “ Title Insurance ”) with respect to the Real Property
insuring Purchaser or its designee as either owner of marketable fee simple title (in the case of each of the Owned Real
Properties with respect to the Purchased Branches) or holder of marketable leasehold interest (in the case of each of the Leased
Real Properties and the Option Branches);

           (n) Seller’s keys to the safe deposit boxes and all other records as exist and are in Seller’s possession or control
related to the safe deposit box business at the Branches;

           (o) Seller’s records related to the Deposits assumed by Purchaser hereunder as exist and are in the possession or
control of Seller;

          (p) All contracts, agreements, leases and other documentation related to the Assets and the Assumed Liabilities;

          (q) A certified copy of the resolutions of the board of directors of Seller approving the transactions contemplated
hereby;

          (r) Copies of the complete personnel files for all Transferred Employees; and

         (s) Such other documents as the parties agree are reasonably necessary to consummate the P&A Transaction as
contemplated hereby.

     3.6. Purchaser Deliveries . At the Closing, Purchaser shall deliver to Seller:

          (a) The Assignment and Assumption Agreement;

         (b) Purchaser’s acceptance of its appointment as successor trustee or custodian, as applicable, of the IRA and Keogh
Accounts included in the Deposits and assumption of the fiduciary obligations of the trustee or custodian with respect thereto,
as contemplated by Section 2.4; 

         (c) The Branch Lease Assignments and such other instruments and documents as any landlord under a Branch Lease
may reasonably require as necessary for providing for the assumption by Purchaser of a Branch Lease, each such instrument
and document in form and substance reasonably satisfactory to the parties and dated as of the Closing Date;

         (d) The Tenant Assignments and such other instruments and documents as any subtenant under a Tenant Lease may
reasonably require as necessary for providing for the assumption by Purchaser of a Tenant Lease, each such instrument and
document in form and substance reasonably satisfactory to the parties and dated as of the Closing Date;

          (e) The Assumed Contract Assignments and such other instruments and documents as any party under an Assumed
Contract may reasonably require as necessary for providing for the assumption by Purchaser of an Assumed Contract, each
such instrument and document in form and substance reasonably satisfactory to the parties and dated as of the Closing Date;
  
                                                                  16
          (f) The Option Branch Lease Agreements;

          (g) The certificate required to be delivered by Purchaser pursuant to Section 9.2(e); and 

         (h) Such other documents as the parties agree are reasonably necessary to consummate the P&A Transaction as
contemplated hereby.

      3.7. Owned Real Property Filings . On or prior the Closing Date, Seller and Purchaser shall file or record, or cause to be filed
or recorded, any and all documents necessary in order that the legal and equitable title to Owned Real Property with respect to
the Purchased Branches (and to each parcel of Leased Real Property with respect to which Purchaser shall choose to acquire
Title Policies) shall be duly vested in Purchaser. Any expenses and documentary transfer Taxes with respect to such filings, the
Title Insurance and all escrow closing costs shall be borne equally by Purchaser and Seller.

      3.8. Allocation of Purchase Price . (a) No later than sixty (60) calendar days after the final determination of the Adjusted 
Payment Amount in accordance with the procedures set forth in Section 3.3, Purchaser shall prepare and deliver to Seller a draft 
of a statement (the “ Draft Allocation Statement ”) setting forth the allocation of the total consideration paid by Purchaser to
Seller pursuant to this Agreement among the Assets for purposes of Section 1060 of the Code. If, within thirty (30) calendar 
days of the receipt of the Draft Allocation Statement, Seller shall not have objected in writing to such draft, the Draft Allocation
Statement shall become the Final Allocation Statement, as defined below. If Seller objects to the Draft Allocation Statement in
writing within such thirty (30) calendar-day period, Purchaser and Seller shall negotiate in good faith to resolve any disputed
items. If, within ninety (90) calendar days after the final determination of the Adjusted Payment Amount in accordance with the 
procedures set forth in Section 3.3, Purchaser and Seller fail to agree on such allocation, any disputed aspects of such allocation 
shall be resolved by a nationally recognized independent accounting firm mutually acceptable to Purchaser and Seller. The
allocation of the total consideration, as agreed upon by Purchaser and Seller (as a result of either Seller’s failure to object to the
Draft Allocation Statement or of good faith negotiations between Purchaser and Seller) or determined by an accounting firm
under this Section 3.8(a) (the “ Final Allocation Statement ”), shall be final and binding upon the parties. Each of Purchaser and
Seller shall bear all fees and costs incurred by it in connection with the determination of the allocation of the total consideration,
except that the parties shall each pay one-half (50%) of the fees and expenses of such accounting firm. 

           (b) Purchaser and Seller shall report the transaction contemplated by this Agreement (including income Tax reporting
requirements imposed pursuant to Section 1060 of the Code) in accordance with the allocation specified in the Final Allocation 
Statement. Each of Purchaser and Seller agrees to timely file, or cause to be timely filed, IRS Form 8594 (or any comparable form
under state or local Tax law) and any required attachment thereto in accordance with the Final Allocation Statement. Except as
otherwise required pursuant to a “determination” under Section 1313 of the Code (or any comparable provision of state or local 
law), neither Purchaser nor Seller shall take, or shall permit its Affiliates to take, a Tax position which is inconsistent with the
Final Allocation Statement. In the event any party hereto receives notice of an audit in respect of the allocation of the
consideration paid for the Assets, such party shall
  
                                                                  17
immediately notify the other party in writing as to the date and subject of such audit. Any adjustment to the Purchase Price
pursuant to Section 3.3 shall be allocated among the Assets by reference to the item or items to which such adjustment is 
attributable.


                                                            ARTICLE 4

                                                   TRANSITIONAL MATTERS

    4.1. Transitional Arrangements . Seller and Purchaser agree to cooperate and to proceed as follows to effect the transfer of
account record responsibility for the Branches:

          (a) Not later than seven (7) calendar days after the date of this Agreement, Seller will meet with Purchaser to 
investigate, confirm and agree upon mutually acceptable transaction settlement procedures and specifications, files, procedures
and schedules, for the transfer of account record responsibility.

          (b) No later than fourteen (14) calendar days after the date of this Agreement, Seller shall deliver to Purchaser the file 
layout, specifications and conversion sample files within.

          (c) From time to time prior to the Closing, after Purchaser has tested and confirmed the conversion sample files,
Purchaser may request and Seller shall provide reasonable additional file-related information, including complete name and
address, account masterfile, ATM account number information, applicable transaction and stop/hold/caution information,
account-to-account relationship information and any other related information with respect to the Deposits.

     4.2. Customers . (a) After Regulatory Approvals have been obtained (except for the expiration of statutory waiting 
periods), but in any event not later than thirty (30) calendar days prior to the Closing Date: 
              (i) Seller will notify the holders of Deposits to be transferred on the Closing Date that, subject to the terms and
          conditions of this Agreement, Purchaser will be assuming liability for such Deposits; and
               (ii) each of Seller and Purchaser shall provide, or join in providing where appropriate, all notices to customers of
          the Branches and other Persons that either Seller or Purchaser, as the case may be, is required to give under
          applicable law or the terms of any other agreement between Seller and any customer in connection with the
          transactions contemplated hereby.

A party proposing to send or publish any notice or communication pursuant to this Section 4.2 shall furnish to the other party a 
copy of the proposed form of such notice or communication, to the extent reasonably practicable, three (3) Business Days, but 
in any event at least one (1) Business Day, in advance of the proposed date of the first mailing, posting, or other dissemination 
thereof to customers, and shall not unreasonably refuse to amend such notice to incorporate any changes that the other such
party proposes as necessary to comply with applicable law. All costs and expenses of any notice or communication sent or
published by Purchaser or Seller shall be the responsibility of the party sending such notice or communication
  
                                                                 18
and all costs and expenses of any jointly sent notice or communication shall be shared equally by Seller and Purchaser. As
soon as reasonably practicable and in any event within twenty-one (21) calendar days after the date hereof, Seller shall provide 
to Purchaser a report of the names and addresses of the owners of the Deposits and the lessees of the safe deposit boxes as of
the date hereof in connection with the mailing of such materials and Seller shall provide updates to such report at reasonable
intervals thereafter upon the reasonable request of Purchaser from time to time. No communications by Purchaser, and no
communications by Seller outside the ordinary course of business, to any such owners, borrowers, customers or lessees as
such shall be made prior to the Closing Date except as provided in this Agreement or otherwise agreed to by the parties in
writing.

         (b) Following the giving of any notice described in paragraph (a) above, Purchaser and Seller shall deliver to each 
new customer at any of the Branches such notice or notices as may be reasonably necessary to notify such new customers of
Purchaser’s pending assumption of liability for the Deposits and to comply with applicable law.

           (c) Neither Purchaser nor Seller shall object to the use, by depositors of the Deposits, of payment orders issued to or
ordered by such depositors on or prior to the Closing Date, which payment orders bear the name, or any logo, trade name, trade
dress, trademark, service mark or the proprietary mark or proprietary information of Seller, FBC or any of their respective
Affiliates (collectively “Seller’s IP”); provided , however , that Purchaser shall notify Deposit account customers that, upon the
expiration of a post-Closing processing period, which shall end ninety (90) calendar days after the Closing Date (the “ Post-
Closing Processing Period ”), any Items that are drawn on Seller shall not thereafter be honored by Seller. Such notice shall be
given by delivering written instructions to such effect to such Deposit account customers in accordance with this Section 4.2 
and subject to provisions of Section 7.8. 

           (d) During the period beginning on the Closing Date and ending on the ninetieth (90th) calendar day thereafter, Seller 
shall, by commercially reasonable efforts and at Purchaser’s expense, (A) accept as a correspondent bank for forwarding to 
Purchaser all Items that are presented to Seller for payment or credit in any manner including through Seller’s Federal Reserve
cash letters or correspondent bank cash letters or deposited by Deposit account customers, correspondent banks or others but
excluding ATM withdrawals, deposits and transfers unless initiated with an automated teller machine card issued by Purchaser;
and (B) send all such items in the form of an ICL (Image Cash Letter) and make available to Purchaser no later than 8:00 a.m., 
New York City time, on the Business Day after presentation to Seller. For deposits processed in error by Seller, copies of the
deposit slips and copies of the deposited items will be batched and provided to Purchaser by 12:00 noon, New York City time,
on the next Business Day and will be provided via secured email to allow memo posting of the deposits to the customer
accounts.

     4.3. Direct Deposits . Seller will transfer to Purchaser on the Closing Date all of those automated clearing house (“ ACH ”)
and FedWire direct deposit arrangements related (by agreement or other standing arrangement, if any) to the Deposits that are
in Seller’s ACH warehouse system and will use its commercially reasonable efforts to so transfer any other such arrangements.
For a period of ninety (90) calendar days following the Closing, in the case of ACH direct deposits to accounts constituting 
Deposits (the final Business Day of such period
  
                                                                19
being the “ ACH Direct Deposit Cut-Off Date ”), Seller shall transfer to Purchaser all received ACH direct deposits each
Business Day at 7:00 a.m., New York City time, to the extent reasonably practicable, but in any event not later than 7:30 a.m.,
New York City time. Such transfers shall contain Direct Deposits effective for that Business Day only. On each Business Day,
for a period of ninety (90) calendar days following the Closing Date (the final Business Day of such period being the “ FedWire
Direct Deposit Cut-Off Date ”), FedWires received by Seller for credit to accounts constituting Deposits shall be returned (as
soon as is practicable after receipt) to the originator with an indication of Purchaser’s correct Wire Room contact information
and an instruction that such wire should be sent to Purchaser. Compensation for ACH direct deposits or FedWire direct
deposits not forwarded to Purchaser on the same Business Day as that on which Seller has received such deposits will be
handled in accordance with the applicable rules established by the United States Council on International Banking. After the
respective ACH Direct Deposit Cut-Off Date or FedWire Direct Deposit Cut-Off Date, Seller may discontinue accepting and
forwarding ACH and FedWire entries and funds and return such direct deposits to the originators marked “Account Closed.” 
Seller and its Affiliates shall not be liable for any overdrafts that may thereby be created. Purchaser and Seller shall agree on a
reasonable period of time prior to the Closing during which Seller will no longer be obligated to accept new direct deposit
arrangements related to the Branches. At the time of the ACH Direct Deposit Cut-Off Date, Purchaser will provide ACH
originators with account numbers relating to the Deposits.

      4.4. Direct Debits . As soon as practicable after the notice provided in Section 4.2(a), Purchaser shall send appropriate 
notice to all customers having accounts constituting Deposits the terms of which provide for direct debit of such accounts by
third parties, instructing such customers concerning the transfer of customer direct debit authorizations from Seller to
Purchaser. Such notice shall be in a form reasonably agreed to by the parties. For a period of ninety (90) calendar days following 
the Closing, Seller shall transfer to Purchaser all received direct debits on accounts constituting Deposits each Business Day at
7:00 a.m., New York City time, to the extent reasonably practicable, but in any event not later than 7:30 a.m., New York City time.
Such transfers shall contain Direct Debits effective for that Business Day only. Thereafter, Seller may discontinue forwarding
such entries and return them to the originators marked “Account Closed.” Purchaser and Seller shall agree on a reasonable
period of time prior to the Closing during which Seller will no longer be obligated to accept new direct debit arrangements
related to the Branches. Beginning on the Closing Date, Purchaser shall provide ACH originators of such Direct Debits with
account numbers relating to the Deposits.

     4.5. Access to Records . (a) From and after the Closing Date, each of the parties shall permit the other, at such other party’s
sole expense, reasonable access to any applicable Records in its possession or control relating to matters arising on or before
the Closing Date and reasonably necessary, solely in connection with (i) accounting purposes, (ii) regulatory purposes, (iii) any 
claim, action, litigation or other proceeding involving the party requesting access to such Records, (iv) any legal obligation 
owed by such party to any present or former depositor or other customer, or (v) Tax purposes, subject to confidentiality 
requirements. Such party requesting such access shall not use the Records or any information contained therein or derived
therefrom for any other purpose whatsoever. All Records, whether held by Purchaser or Seller, shall be maintained for such
periods as are required by law, unless the parties shall agree in writing to a longer period. Between the date hereof and the
Closing Date, Purchaser and Seller shall use
  
                                                                20
commercially reasonable efforts to agree to policies and procedures to be followed by each party in connection with any
request by Purchaser, following the Closing Date, for Seller to provide it with Records retained by Seller following the Closing.

           (b) Each party agrees that any records or documents that come into its possession as a result of the transactions
contemplated by this Agreement, to the extent relating to the other party’s business and not relating to the Assets, the
Assumed Liabilities or the business of the Branches (which becomes the property of Purchaser), shall remain the property of
the other party, and shall, upon the other party’s request from time to time and as it may elect in its sole discretion, be returned
to the other party or destroyed, and each party agrees not to make any use of such records or documents and to keep such
records and documents confidential in accordance with Section 7.2(c) and 7.2(d); provided that to the extent that Purchaser
does not have actual knowledge that records in its possession relate to Seller’s business and not the Assets, the Assumed
Liabilities or the business of the Branch, Purchaser may treat such records in accordance with its ordinary course document
retention and destruction policies.

      4.6. Interest Reporting and Withholding . (a) Unless otherwise agreed to by the parties, Seller will report to applicable 
taxing authorities and holders of Deposits, with respect to the period from January 1 of the year in which the Closing occurs 
through the Closing Date, all interest (including dividends and other distributions with respect to money market accounts)
credited to, withheld from and any early withdrawal penalties imposed upon, the Deposits. Purchaser will report to the
applicable taxing authorities and holders of Deposits, with respect to all periods from the day after the Closing Date, all such
interest credited to, withheld from and any early withdrawal penalties imposed upon, the Deposits. Any amounts required by
any governmental agencies to be withheld from any of the Deposits through the Closing Date will be withheld by Seller in
accordance with applicable law or appropriate notice from any governmental agency and will be remitted by Seller to the
appropriate agency on or prior to the applicable due date. Any such withholding required to be made subsequent to the Closing
Date will be withheld by Purchaser in accordance with applicable law or appropriate notice from any governmental agency and
will be remitted by Purchaser to the appropriate agency on or prior to the applicable due date.

          (b) Unless otherwise agreed by the parties, Seller shall be responsible for delivering to payees all IRS notices and
forms with respect to information reporting and tax identification numbers required to be delivered through the Closing Date
with respect to the Deposits, and Purchaser shall be responsible for delivering to payees all such notices and forms required to
be delivered following the Closing Date with respect to the Deposits.

    4.7. Negotiable Instruments . Seller will remove any supply of Seller’s money orders, official checks, gift checks, travelers’ 
checks or any other negotiable instruments located at each of the Branches on the Closing Date.

     4.8. ATM/Debit Cards; POS Cards . Seller will provide Purchaser with a list of ATM access/debit cards and Point-of-Sale (“ 
POS ”) cards issued by Seller to depositors of any Deposits, and a record thereof in a format reasonably agreed to by the parties
containing all addresses therefor, no later than twenty-one (21) calendar days after the date of this Agreement, and Seller will 
provide Purchaser with an updated record forty-five (45) calendar days prior to 
  
                                                                 21
the Closing Date. At or promptly after the Closing, Seller will provide Purchaser with a revised record through the Closing. In
instances where a depositor of a Deposit made an assertion of error regarding an account pursuant to the Electronic Funds
Transfer Act and Federal Reserve Board Regulation E, and Seller, prior to the Closing, recredited the disputed amount to the
relevant account during the conduct of the error investigation, Purchaser agrees to comply with a written request from Seller to
debit such account in a stated amount and remit such amount to Seller, to the extent of the balance of funds available in the
accounts. Seller agrees to reimburse Purchaser for any claims, losses or expenses that Purchaser may incur as a result of
complying with such request from Seller. Seller and Purchaser shall discuss in good faith the option of having Seller transfer
customers’ PINs to Purchaser at Closing. In the context of such discussions, Seller will disclose to Purchaser customers’ PINs
as reasonably necessary to effectuate any such transfer, it being agreed that Purchaser shall protect the confidentiality of such
PINs in accordance with protocols Purchaser uses to protect its customers’ PINs. Following receipt of all Regulatory Approvals
(except for the expiration of statutory waiting periods), Purchaser shall reissue ATM access/debit cards to depositors of any
Deposits not earlier than forty-five (45) Business Days nor later than fifteen (15) Business Days prior to the Closing Date, which 
cards shall be effective on or before 3:00 p.m., New York City time, on the Closing Date. Purchaser and Seller agree to settle any
and all ATM transactions and POS transactions effected on or before 3:00 p.m., New York City time, on the Closing Date, but
processed after the Closing Date, as soon as practicable. In addition, Purchaser assumes responsibility for and agrees to pay on
presentation all POS transactions initiated before or after the Closing with POS cards issued by Seller to access Transaction
Accounts.

      4.9. Data Processing Conversion for the Branches and Handling of Certain Items . (a) The conversion of the data 
processing with respect to the Branches and the Assets and Assumed Liabilities will be completed on the Closing Date unless
otherwise agreed to by the parties. Seller and Purchaser agree to cooperate to facilitate the orderly transfer of data processing
information in connection with the P&A Transaction. Within ten (10) Business Days of the date of this Agreement, Purchaser 
and/or its representatives shall be permitted reasonable access (subject to the provisions of Section 7.2(a)) to review each 
Branch for the purpose of installing automated equipment for use by Branch personnel. Following the receipt of the Regulatory
Approvals (except for the expiration of statutory waiting periods), but in no event later than forty-five (45) Business Days prior 
to the Closing Date, or with the approval of Seller, Purchaser shall be permitted, at its expense and without unreasonably
interfering with the operations of the Branches, to install and test communication lines, both internal and external, from each site
and prepare for the installation of automated equipment on the Closing Date.

          (b) As soon as practicable and in no event more than three (3) Business Days after the Closing Date, Purchaser shall 
mail to each depositor in respect of a Transaction Account (i) a letter approved by Seller requesting that such depositor 
promptly cease writing Seller’s drafts against such Transaction Account and (ii) new drafts which such depositor may draw 
upon Purchaser against such Transaction Accounts. Purchaser shall use commercially reasonable efforts to cause these
depositors to begin using such drafts and cease using drafts bearing Seller’s name. The parties hereto shall use commercially
reasonable efforts to develop procedures that cause Seller’s drafts against Transaction Accounts received after the Closing
Date to be cleared through Purchaser’s then-current clearing procedures. During the ninety (90) calendar day period after the 
Closing Date, if it is not possible to clear Transaction Account drafts through
  
                                                                22
Purchaser’s then-current clearing procedures, Seller shall make available to Purchaser as soon as practicable but in no event
more than three (3) Business Days after receipt all Transaction Account drafts drawn against Transaction Accounts. Seller shall 
have no obligation to pay such forwarded Transaction Account drafts. Upon the expiration of such ninety (90) calendar day 
period, Seller shall cease forwarding drafts against Transaction Accounts. Seller shall be compensated for its processing of the
drafts and for other services rendered to Purchaser during the ninety (90) calendar day period following the Closing Date in 
accordance with Schedule 4.9.

           (c) Any items that were credited for deposit to or cashed against a Deposit prior to the Closing and are returned
unpaid on or within ninety (90) calendar days after the Closing Date (“ Returned Items ”) will be handled as set forth herein.
Except as set forth below, Returned Items shall be the responsibility of Seller. If depositor’s bank account at Seller is charged for
the Returned Item, Seller shall forward such Returned Item to Purchaser. If upon Purchaser’s receipt of such Returned Item there
are sufficient funds in the Deposit to which such Returned Item was credited or any other Deposit transferred at the Closing
standing in the name of the party liable for such Returned Item, Purchaser will debit any or all of such Deposits an amount equal
in the aggregate to the Returned Item, and shall repay that amount to Seller. If there are not sufficient funds in the Deposit
because of Purchaser’s failure to honor holds placed on such Deposit, Purchaser shall repay the amount of such Returned Item
to Seller. Any items that were credited for deposit to or cashed against an account at the Branches to be transferred at the
Closing prior to the Closing and are returned unpaid more than ninety (90) calendar days after the Closing will be the 
responsibility of Seller.

          (d) During the ninety (90) calendar day period after the Closing Date, any deposits or other payments received by 
Purchaser in error shall be returned to Seller within two (2) Business Days of receipt by Purchaser. 

           (e) Prior to the Closing Date, Purchaser will open and maintain a demand deposit account with Seller for deposits, to
be used for settlement activity following the Closing Date. Seller will provide Purchaser with a daily statement for this account
and Purchaser will be responsible for initiating all funding and draw-down activity against this account. Purchaser will ensure
that all debit (negative) balances are funded no later than one day following the day the account went into a negative status.
Activity that will be settled through this account will include but not be limited to: items drawn on a Deposit but presented to
Seller for payment, ACH transactions, Direct Debit transactions and Returned Items.

     4.10. Employee Training . In accordance with Section 7.2 and after receipt of Regulatory Approvals (except for the 
expiration of statutory waiting periods), Seller and Purchaser shall agree to mutually acceptable terms and conditions under
which Purchaser shall be permitted to provide training to Seller’s employees at the Branches who are reasonably anticipated to
become Transferred Employees. Any such training will be conducted in a manner that is reasonably expected not to interfere
with the business activities of the Branches. Purchaser shall reimburse Seller for the additional time spent by, and all related,
reasonable travel expenses incurred by, any such prospective Transferred Employee in connection with such training activities
to the extent such time and expenses would not have been spent or incurred by such prospective Transferred Employee but for
such training activities, and Purchaser shall pay the full salary or wages of replacement employees for such prospective
Transferred Employees
  
                                                                 23
excused from their duties at the Branches for such training activities for the periods during which such prospective Transferred
Employees are excused, where such replacement employees are reasonably determined by Seller (and reasonably agreed to by
Purchaser) to be needed to maintain ongoing operations at the Branches without disruption. Such training activities may take
place, as mutually agreed by the parties, at a Branch or off-site. As promptly as practicable following the date of this
Agreement, Purchaser shall provide Seller with Purchaser’s proposed plan for the training of all anticipated Transferred
Employees and, within ten (10) Business Days of Seller’s receipt of such plan, Seller shall provide Purchaser with an estimate of
the anticipated costs of implementing Purchaser’s proposed training program. Notwithstanding the foregoing, Seller and
Purchaser shall reasonably cooperate in good faith to minimize the costs of such training program in a manner consistent with
achieving its intended purpose.

      4.11. Expenses Relating to Transitional Matters . Purchaser shall be responsible for the payment of all documented, out-of-
pocket third party fees or expenses reasonably incurred by Seller in connection with the preparation and delivery to Purchaser
of data, files and other information contemplated by this Article 4; provided that Seller shall, when commercially reasonable,
utilize internal resources.

     4.12. New Deposit Account Procedures . Seller and Purchaser shall cooperate in good faith to develop procedures for
handling Persons seeking to open new deposit accounts or loans at a Branch within the period that is thirty (30) calendar days 
prior to the Closing Date, it being understood that such procedures shall be established in such a manner as to facilitate the
Closing.


                                                            ARTICLE 5

                                    REPRESENTATIONS AND WARRANTIES OF SELLER

     Seller represents and warrants to Purchaser as follows, except as set forth in the Seller Disclosure Schedule:

     5.1. Corporate Organization and Authority . Seller is a federal chartered stock savings bank validly existing under the laws
of the United States, and has the requisite corporate power and authority to conduct the business now being conducted at the
Branches. Seller and each of its Affiliates has the requisite corporate power and authority and has taken all shareholder and
corporate action necessary in order to execute and deliver this Agreement and to consummate the transactions contemplated
hereby. This Agreement has been duly and validly executed and delivered by Seller and (assuming due authorization, execution
and delivery by Purchaser) is a valid and binding agreement of Seller enforceable against Seller in accordance with its terms
subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general equity principles.

     5.2. No Conflicts . The execution, delivery and performance of this Agreement by Seller does not, and will not, (i) violate 
any provision of its charter or by-laws, (ii) subject to Regulatory Approvals, violate or constitute a breach of, or default under, 
any law, rule, regulation, judgment, decree, ruling or order of any court, government or governmental agency to which Seller is
subject or any agreement or instrument of Seller, or to which Seller is subject
  
                                                                 24
or by which Seller is otherwise bound, which violation, breach, contravention or default referred to in this clause (ii),
individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect (assuming the receipt of any
required third party consents under the Branch Leases and the Assumed Contracts in respect of the transactions herein
contemplated) or (iii) violate, conflict with, result in a breach of any provision of or the loss of any benefit under, constitute a 
default (or an event that with notice or lapse of time, or both, would constitute a default) under, result in the termination of or a
right of termination or cancellation under, accelerate the performance required by, or result in the creation of any Encumbrance
upon any of the Assets under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust,
license, lease, agreement or other instrument or obligation to which Seller is a party, or by which it or any of its properties or
assets may be bound or affected, which breach, conflict, loss of benefit, termination, cancellation, acceleration, Encumbrance,
violation or default would materially impact the Assets and Assumed Liabilities or would materially prevent or delay Seller from
performing its obligations under this Agreement in all material respects. Seller has all licenses, franchises, permits, certificates of
public convenience, orders and other authorizations of all federal, state and local governments and governmental authorities
necessary for the lawful conduct of its business at each of the Branches as now conducted in all material respects, and all such
material licenses, franchises, permits, certificates of public convenience, orders and other authorizations are valid and in good
standing and, to Seller’s knowledge, are not subject to any suspension, modification, revocation or proceedings related thereto.

     5.3. Approvals and Consents . Other than Regulatory Approvals, no notices, reports or other filings are required to be
made by Seller with, nor are any consents, registrations, approvals, permits or authorizations required to be obtained by Seller
from, any governmental or regulatory authorities of the United States or the several States in connection with the execution and
delivery of this Agreement by Seller and the consummation of the transactions contemplated hereby by Seller. There are no
consents or approvals of any other third party required to be obtained in connection with the execution and delivery of this
Agreement by Seller and the consummation of the transactions contemplated by this Agreement by Seller.

      5.4. Leases . Each Branch Lease and each Tenant Lease is the valid and binding obligation of Seller, and to Seller’s
knowledge, of each other party thereto; and there does not exist with respect to Seller’s material obligations thereunder, or, to
Seller’s knowledge, with respect to the material obligations of the lessor thereof, any default, or event or condition that
constitutes or, after notice or passage of time or both, would constitute a default on the part of Seller or the lessor or sublessee,
as applicable, under any such Branch Lease or Tenant Lease. As used in this Section 5.4, the term “lessor” includes any sub-
lessor of the property to Seller. The Branch Leases give Seller the right to occupy the building and land comprising the related
Branch in accordance with the terms of such Branch Lease. Other than the Tenant Leases, there are no leases to third parties
relating to any Branch created or suffered to exist by Seller or, to Seller’s knowledge, created or suffered to exist by any other
Person.

     5.5. Litigation and Undisclosed Liabilities . There are no actions, complaints, petitions, suits, investigations or other
proceedings or any decree, injunction, judgment, order or ruling entered, promulgated or pending or, to Seller’s knowledge,
threatened against Seller and affecting or relating to the Branches, the Assets or the Assumed Liabilities or against any of the
  
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Branches. To Seller’s knowledge, there are no obligations or liabilities (whether or not accrued, contingent or otherwise) or facts
or circumstances that would reasonably be expected to result in any material claims or such obligations or liabilities with respect
to the Branches, the Assets or the Assumed Liabilities other than as disclosed in this Agreement and the Seller Disclosure
Schedules.

     5.6. Regulatory Matters . (a) There are no pending or, to Seller’s knowledge, threatened disputes or controversies between
Seller and any federal, state or local governmental agency or authority, or investigation or inquiry by any such agency or
authority, materially affecting or relating to the Branches, the Assets or the Assumed Liabilities.

          (b) Neither Seller nor any of its Affiliates has received any oral or written indication from any federal or state
governmental agency or authority that such agency would oppose or refuse to grant a Regulatory Approval and Seller knows
of no reason relating to Seller or its Affiliates for any such opposition or refusal.

             (c) Neither Seller nor any of its Affiliates has adopted by board resolution or bylaw at the request of, or is a party to
any written order, decree, agreement or memorandum of understanding with, or commitment letter or similar submission to, or is
the subject of any supervisory agreement or letter or enforcement action by (any of the foregoing, an “ Enforcement Action ”),
any Regulatory Authority, nor has any of them been advised by any Regulatory Authority that it is contemplating issuing or
requesting any Enforcement Action, in each case materially affecting or relating to the Branches, the Assets or the Assumed
Liabilities.

     5.7. Compliance with Laws . All business and operations of the Branches or relating to the Assets and the Assumed
Liabilities has been conducted in compliance, in all material respects, with Seller’s policies and procedures and all federal, state
and local laws, regulations, rules and ordinances, and any Enforcement Action applicable thereto. The Deposits and deposit
accounts were opened, extended or made, and have been maintained, in accordance in all material respects with all applicable
federal, state and local laws, regulations, rules and orders, and the terms and conditions of the applicable agreements and
account documents governing such Deposits and deposit accounts.

    5.8. Records . The Records accurately reflect in all material respects as of their respective dates the Net Book Value of the
Assets and Assumed Liabilities being transferred to Purchaser hereunder and all other matters the Records purport to present.
The Records include all customary Branch, customer and customer-related information reasonably necessary to service the
Deposits on an ongoing basis and as may be required under applicable law.

      5.9. Title to Assets . Seller is the lawful owner of, or in the case of leased Assets, has an exclusive and valid leasehold
interest in, each of the Assets, free and clear of all Encumbrances. Subject to the terms and conditions of this Agreement, on the
Closing Date Purchaser will acquire good and marketable title to, or in the case of leased Assets (subject to receipt of the
consents and approvals set forth in Schedule 5.3 of the Seller Disclosure Schedule), an exclusive and valid leasehold interest in,
all of the Assets, free and clear of any Encumbrances.
  
                                                                  26
      5.10. Deposits . The deposit agreements and other documents relating to the Deposits to be delivered or made available to
Purchaser will be those that are necessary to establish the amounts or other terms of the Deposits, that will govern the terms of
the Deposit accounts and that evidence the Deposits. The Deposit accounts are insured by the FDIC through the Deposit
Insurance Fund to the fullest extent permitted by law, and all premiums and assessments required to be paid in connection
therewith have been paid in full when due. All of the Deposits are transferable at the Closing to Purchaser, and, to Seller’s
knowledge, there are no Deposits that are subject to any judgment, decree or order of any court or governmental authority. Prior
to the date of this Agreement, Seller has provided Purchaser with forms of all deposit agreements related to the Deposits and all
such forms contain all material terms of the Deposits.

     5.11. Environmental Laws; Hazardous Substances . Each parcel of Real Property:
              (i) is and has been operated by Seller in all material respects in compliance with all applicable Environmental
          Laws;
               (ii) to Seller’s knowledge, is not the subject of any written notice received by Seller from any governmental
          authority or other Person alleging the material violation of, or material liability under, any applicable Environmental
          Law;
                 (iii) is not currently subject to any court order, administrative order or decree arising under any Environmental
          Law;
               (iv) has not been used by Seller or, to Seller’s knowledge, any other Person for the disposal of Hazardous
          Substances and, to Seller’s knowledge, is not contaminated with any Hazardous Substances requiring remediation or
          response under any applicable Environmental Law;
              (v) to Seller’s knowledge, with respect to any Hazardous Substances, the only use of any such Hazardous
          Substances has been in such amounts and types as is lawful under Environmental Law; and
               (vi) has not had any releases, emissions, or discharges of Hazardous Substances except as permitted under
          applicable Environmental Laws which have not been remediated in all material respects.

   5.12. Brokers’ Fees . Seller has not employed any broker or finder or incurred any liability for any brokerage fees,
commissions or finders’ fees in connection with the transactions contemplated by this Agreement, except for the fees and
commissions of FIG Partners LLC, for which Seller or FBC shall be solely liable.

     5.13. Property .

           (a) Seller has, and will convey to Purchaser at the Closing, good and marketable title to the Owned Real Property with
respect to the Purchased Branches, free and clear of all Encumbrances.
  
                                                                  27
           (b) Seller has not received any written notice of any uncured current violations, citations, summonses, subpoenas,
compliance orders, directives, suits, other legal processes, or other written notice of potential liability under applicable zoning,
building, fire and other applicable laws and regulations relating to the Owned Real Property, and, except as would not
reasonably be expected, individually or in the aggregate, to affect, in any material respect, Purchaser’s use and enjoyment of the
Owned Real Property, there is no action, suit, proceeding or investigation pending or, to Seller’s knowledge, threatened before
any governmental authority that relates to Seller or the Owned Real Property.

          (c) Seller has not received any written notice of any actual or pending condemnation proceeding relating to the
Branches, nor, to Seller’s knowledge, has any such proceeding been threatened.

           (d) Seller is not in default or breach of, and has received no written notice of any material default or breach by Seller
under any covenant, condition, restriction, right of way or easement affecting the Owned Real Property or any portion thereof,
and, to Seller’s knowledge, no such default or breach now exists.

           (e) Neither Seller nor any of its Affiliates has entered into any agreement regarding the Real Property (other than the
Branch Leases), and the Real Property is not subject to any claim, demand, suit, lien, proceeding or litigation of any kind,
pending or outstanding, or, to Seller’s knowledge, threatened, that would be binding upon Purchaser or its successors or
assigns and affect or limit Purchaser’s or its successors’ or assigns’ use and enjoyment of the Real Property or that would
materially limit or restrict Purchaser’s right or ability to enter into this Agreement and consummate the sale and purchase
contemplated hereby.

           (f) Seller has valid title to its Personal Property, free and clear of all Encumbrances, and has the right to sell, convey,
transfer, assign and deliver to Purchaser all of the Personal Property. The Personal Property is in reasonable working order in all
material respects (subject to ordinary wear and tear).

     5.14. Absence of Certain Changes or Events .

           (a) Since December 31, 2010, (i) Seller has conducted its business represented by the Branches, Assets and Assumed 
Liabilities only in the ordinary and usual course consistent with past practice, and (ii) except as disclosed in FBC’s periodic
public filings that have been filed with, or furnished to, the Securities and Exchange Commission and become publicly available
prior to the date hereof and after December 31, 2010 (but disregarding disclosures contained under the heading “Risk Factors,” 
or disclosure set forth in any “forward-looking statements” disclaimer or any other statements that are similarly non-specific or
cautionary, predictive or forward-looking in nature), no event has occurred that has had, or would reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect with respect to Seller.

           (b) Since December 31, 2010, Seller has not taken, or committed to take, any action, nor has the board of directors of 
Seller resolved to take any action, that, if so taken, committed to or resolved on or after the date of this Agreement would not be
permitted under Section 7.1(d) without Purchaser’s consent.
  
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     5.15. Employee Benefit Plans; Labor Matters .

            (a) Schedule 5.15(a)(i) of the Seller Disclosure Schedule contains a complete, true and accurate list of the Branch
Employees, with such list expressly indicating (i) which of such employees are on leave and who are eligible to return to work 
under Seller’s policies, specifying the type of leave (such as, family and medical leave, military leave or personal, short-term or
long-term disability or pregnancy leave, approved or unapproved) and the anticipated return date from such leave, (ii) their date 
of commencement of employment, (iii) their positions, (iv) their business locations, (v) their cost center name and number, 
(vi) their annual/weekly/hourly rates of compensation, (vii) their incentive and discretionary bonus amounts for the 2010 
calendar year, (viii) their current year’s target incentive bonus, (ix) their status as exempt or non-exempt under the Fair Labor
Standards Act, and (x) their average scheduled hours per week. Schedule 5.15(a)(i) shall be updated promptly upon Purchaser’s
request from time to time following the date hereof to reflect changes to the foregoing, with the final such update to occur no
later than November 2, 2011 (it being understood that Seller will inform Purchaser in writing of the termination of employment of 
a Branch Employee following such date). Schedule 5.15(a)(ii) of the Seller Disclosure Schedule sets forth a complete, true and
accurate list of each written or oral, express or implied, employment, retention, bonus commitment (whether or not a guarantee),
severance, change of control agreement or other similar arrangement, to which a Branch Employee is a party with Seller (each,
an “ Employment Agreement ”), and Seller has provided or made available complete, true and accurate copies of each such
agreement. None of the Branch Employees are subject to any non-competition, non-solicitation or any other similar agreement
that would limit or restrict any Branch Employee’s employment activities or services upon severance of employment with Seller.

          (b) No Benefit Plan in which the Branch Employees participate is a multiemployer plan within the meaning of Section 3
(37) of ERISA or a plan that has two or more contributing sponsors at least two of whom are not under common control within
the meaning of Section 4063 of ERISA. 

          (c) The transactions contemplated by this Agreement will not, either alone or in combination with any other event or
events, subject to Purchaser’s compliance with its obligations under this Agreement, (i) entitle any Branch Employee to 
severance pay, unemployment compensation or any other payment or (ii) result in acceleration of benefits or payments due any 
Branch Employee.

           (d) No Branch Employee is a party to any collective bargaining agreement, contract or other agreement or
understanding with a labor organization of any type. With respect to any Branch Employee, (i) Seller is not the subject of any 
proceeding seeking to compel it to bargain with any labor organization as to wages and conditions of employment, nor to
Seller’s knowledge is any such proceeding threatened, and (ii) no strike or similar labor dispute by the Branch Employees is 
pending or, to Seller’s knowledge, threatened. To Seller’s knowledge, there have not been any efforts during the past five years
involving any Branch Employee seeking to certify a collective bargaining unit or engaging in any other union organizational
activity.
  
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           (e) Seller has not within the past twelve (12) months caused (i) a plant closing as defined in the WARN Act, affecting
any site of employment or one or more operating units within any site of employment of Seller at which the Branch Employees
are located or (ii) a mass layoff as defined in the WARN Act, nor has Seller been affected by any transaction or engaged in 
layoffs or employment terminations sufficient in number to trigger application of any state or local law similar to the WARN Act,
in each case, under circumstances that would reasonably be expected to affect the Branch Employees.

     5.16. Available Funds . Seller has, and as of the Closing Date will have, sufficient funds to consummate the transactions
contemplated by this Agreement, including the making of payments pursuant to Section 3.2 and, if applicable, Section 3.3. 

      5.17. Post-Closing Condition . After the Closing and immediately after giving effect to the transactions contemplated by
this Agreement, including the making of payments pursuant to Section 3.2 and, if applicable, Section 3.3, (i) the consolidated fair 
value of the assets of such Seller and its subsidiaries, at a fair valuation, will, as of such date, exceed their consolidated debts
and liabilities (subordinated, contingent or otherwise), (ii) the consolidated present fair saleable value of the property of Seller 
and its subsidiaries will, as of such date, be greater than the amount that will be required to pay the probable liability of their
consolidated debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become
absolute and matured; (iii) Seller and its subsidiaries will be able to pay, as of such date, their consolidated debts and liabilities, 
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (iv) Seller and its 
subsidiaries, taken as a whole, will not, as of such date, have unreasonably small capital with which to conduct the business in
which they are engaged. For purposes of this Section 5.17, the amount of contingent liabilities at any time shall be computed as 
the amount that, in light of all the facts and circumstances existing at such time, represents the amount that would reasonably
be expected to become an actual or matured liability.

      5.18. Limitations on Representations and Warranties . Except for the representations and warranties specifically set forth in
this Agreement, neither Seller nor any of its agents, Affiliates or representatives, nor any other Person, makes or shall be
deemed to make any representation or warranty to Purchaser, express or implied, at law or in equity, with respect to the
transactions contemplated hereby, and Seller hereby disclaims any such representation or warranty whether by Seller or any of
its officers, directors, employees, agents or representatives or any other Person.


                                                             ARTICLE 6

                                  REPRESENTATIONS AND WARRANTIES OF PURCHASER

     Purchaser represents and warrants to Seller as follows:

     6.1. Corporate Organization and Authority . Purchaser is a national banking association, duly organized and validly
existing under the laws of the United States and has the requisite power and authority to conduct the business conducted at
the Branches substantially as currently conducted by Seller. Purchaser has the requisite corporate power and authority and has
taken all corporate action necessary in order to execute and deliver this Agreement and to consummate the transactions
contemplated hereby. This Agreement is a valid and binding agreement of Purchaser enforceable against Purchaser in
accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles.
  
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      6.2. No Conflicts . The execution, delivery and performance of this Agreement by Purchaser does not, and will not,
(i) violate any provision of its charter or by-laws or (ii) subject to the Regulatory Approvals, violate or constitute a breach of, or 
default under, any law, rule, regulation, judgment, decree, ruling or order of any court, government or governmental authority to
which Purchaser is subject or any agreement or instrument of Purchaser, or to which Purchaser is subject or by which Purchaser
is otherwise bound, which violation, breach, contravention or default referred to in this clause (ii), individually or in the
aggregate, would be reasonably expected to have a Material Adverse Effect.

     6.3. Approvals and Consents . Other than the Regulatory Approvals, no notices, reports or other filings are required to be
made by Purchaser with, nor are any consents, registrations, approvals, permits or authorizations required to be obtained by
Purchaser from, any governmental or regulatory authority of the United States or the several States in connection with the
execution and delivery of this Agreement by Purchaser and the consummation of the transactions contemplated hereby by
Purchaser, the failure to make or obtain any or all of which, individually or in the aggregate, would be reasonably expected to
have a Material Adverse Effect.

     6.4. Regulatory Matters . (a) There are no pending or, to Purchaser’s knowledge, threatened disputes or controversies
between Purchaser and any federal, state or local governmental agency or authority that, individually or in the aggregate, would
be reasonably expected to have a Material Adverse Effect.

          (b) Neither Purchaser nor any of its Affiliates has received any oral or written indication from any federal or state
governmental agency or authority that such agency would oppose or refuse to grant a Regulatory Approval and Purchaser
knows of no reason that it will not timely receive any necessary approval or authorization of all applicable bank Regulatory
Authorities.

            (c) Neither Purchaser nor any of its Affiliates is a party to any written order, decree, agreement or memorandum of
understanding with, or commitment letter or similar submission to, any federal or state regulatory agency or authority charged
with the supervision or regulation of depository institutions, nor has Purchaser been advised by any such agency or authority
that it is contemplating issuing or requesting any such order, decree, agreement, memorandum of understanding, commitment
letter or submission, in each case that, individually or in the aggregate, would be reasonably expected to have a Material
Adverse Effect.
  
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      6.5. Litigation and Undisclosed Liabilities . There are no actions, suits or proceedings pending or, to Purchaser’s
knowledge, threatened against Purchaser, or obligations or liabilities (whether or not accrued, contingent or otherwise) or, to
Purchaser’s knowledge, facts or circumstances that could reasonably be expected to result in any claims against or obligations
or liabilities of Purchaser that, individually or in the aggregate, would have a Material Adverse Effect.

    6.6. Operation of the Branches . Purchaser intends to continue to provide retail and business banking services in the
geographical area served by the Branches.

   6.7. Brokers’ Fees . Purchaser has not employed any broker or finder or incurred any liability for any brokerage fees,
commissions or finders’ fees in connection with the transactions contemplated by this Agreement, except for fees and
commissions for which Purchaser shall be solely liable.

     6.8. Limitations on Representations and Warranties . Except for the representations and warranties specifically set forth in
this Agreement, neither Purchaser nor any of its agents, Affiliates or representatives, nor any other Person, makes or shall be
deemed to make any representation or warranty to Seller, express or implied, at law or in equity, with respect to the transactions
contemplated hereby, and Purchaser hereby disclaims any such representation or warranty whether by Purchaser or any of its
officers, directors, employees, agents or representatives or any other Person.


                                                           ARTICLE 7

                                                COVENANTS OF THE PARTIES

     7.1. Activity in the Ordinary Course . From the date hereof until the Closing Date, (i) except as set forth in Schedule 7.1 of 
the Seller Disclosure Schedule, (ii) as may be required by a Regulatory Authority or applicable law or (iii) as otherwise expressly 
provided hereby, Seller will (a) with respect to the Branches, the Assets and the Assumed Liabilities, use its commercially 
reasonable efforts to preserve its business relationships with depositors, (b) maintain the Branches in their current condition, 
ordinary wear and tear excepted, (c) conduct the business of the Branches and preserve the Assets and Assumed Liabilities in 
all material respects in the ordinary and usual course of business consistent with past practice and (d) shall not, without the 
prior written consent of Purchaser (such consent not to be unreasonably withheld, conditioned or delayed):
               (i) Increase or agree to increase the salary, benefits, remuneration or compensation of, or pay any bonus to, any
          Branch Employee, other than, following notice to Purchaser, (A) prior to November 2, 2011, normal salary or wage 
          increases in the ordinary course of business consistent with past practice (however, any such increase shall, in no
          event, increase the aggregate cash compensation for Branch Employees by more than 2% of their aggregate cash
          compensation as of the date of this Agreement) and (B) increases or payments as required by contractual 
          commitments outstanding on the date hereof and provided to Purchaser prior to the date hereof and set forth on
          Schedule 7.1(i)(B) of the Seller Disclosure Schedule;
  
                                                                32
          (ii) Establish, adopt, enter into or amend any plan, agreement or arrangement that provides for incentive
     compensation, bonus or commissions or any Employment Agreement (or arrangement that would be an employment
     agreement if in effect on the date hereof) with respect to any Branch Employee (including any new hire);
            (iii) (A) Transfer any Branch Employee to another branch, facility, or office of FBC or Seller or any of their
     respective Affiliates which is not a Branch, or (B) transfer any employee of FBC or Seller or any of their respective 
     Affiliates who, as of the date hereof, is not a Branch Employee to any Branch other than temporary assignments of a
     fill-in nature in the ordinary course of business;
          (iv) Hire any employee for any of the Branches other than, prior to November 2, 2011, in the ordinary course and 
     consistent with past practices, including, with respect to the type of position filled and the compensation and benefit
     levels;
          (v) Terminate any Branch Employee, except in the ordinary course of business in accordance with existing
     personnel policies and practices of Seller;
           (vi) Establish or price Deposits at any Branch other than in the ordinary course of business consistent with
     Seller’s past practices (including deposit pricing policies in effect for such Branch as of the date hereof), subject to
     the limitation in (vii) below; 
           (vii) Offer interest rates or terms on any category of Deposits at any Branch in a manner inconsistent with
     Seller’s past practice or, without limiting the generality of the foregoing, accept any brokered deposits at the
     Branches;
          (viii) Introduce new products or market promotions at any Branch other than market promotions in the ordinary
     course of business consistent with Seller’s past practices; provided , however , that in no event shall Seller offer any
     “teaser” interest rates in the course of introducing any new market promotion permitted under this Section 7.1(viii); 
          (ix) Transfer to or from any Branch to or from any of Seller’s other operations or branches any material Assets
     (including customer relationships or goodwill) or any Deposits (except pursuant to an unsolicited customer request
     where it would be customary banking practice to honor such request);
          (x) Sell, transfer, assign, encumber or otherwise dispose of or enter into any contract, agreement or
     understanding to sell, transfer, assign, encumber or dispose of any of the Assets or Deposits existing on the date
     hereof, except in the ordinary course of business consistent with past practice;
  
                                                            33
               (xi) Make or agree to make any individual capital expenditure in respect of the Assets or the Assumed Liabilities
          in excess of $5,000;
               (xii) Make or agree to make any material improvements to the Owned Real Property or the leased property subject
          to a Branch Lease, except normal maintenance or refurbishing purchased or made in the ordinary course of business;
               (xiii) Close, sell, consolidate, relocate or materially alter any Branch or otherwise file any application or give any
          notice to relocate or close any Branch;
               (xiv) Amend, terminate or extend in any material respect any Branch Lease or Tenant Lease; provided , however ,
          Seller may extend any Branch Lease or Tenant Lease if, in its reasonable business judgment, and after consultation
          with Purchaser, Seller determines such extension is necessary to deliver the Branch on the Closing Date as a fully
          operative branch banking operation;
                (xv) Knowingly take any action that, or omit to take (and shall cause its Affiliates not to knowingly take or omit
          to take) any action that if not taken, would reasonably be expected to (A) adversely affect the ability of any party 
          hereto to obtain the Regulatory Approvals, (B) adversely affect the ability of any party hereto to obtain any consent 
          required pursuant to this Agreement, (C) result in the failure of the condition set forth in Section 9.1(c) or (D) result in 
          any of the covenants or conditions to the transactions contemplated hereby not being materially satisfied;
               (xvi) Release, compromise or waive any material claim or right that is part of the Assets or the Assumed
          Liabilities;
               (xvii) Take any action with respect to Taxes or Tax matters that could adversely affect the Assets, the Assumed
          Liabilities, the operation of the Branches or Purchaser;
               (xviii) Except as permitted by this Section 7.1, knowingly take, or knowingly permit its Affiliates to take, any 
          action impairing in a material respect Purchaser’s rights or obligations in respect of any Deposit, Asset or Assumed
          Liability; or
                (xix) Solicit, agree with, or commit to, any Person to do any of the things described in clauses (i) through 
          (xviii) except as contemplated hereby. 

      7.2. Access and Confidentiality . (a) Until the earlier of the Closing Date and the date on which the Agreement is terminated 
pursuant to Article 10, Seller shall afford to Purchaser and its officers and authorized agents and representatives reasonable
access during normal business hours and at such other times as reasonably requested to the properties, books, records,
contracts, documents, files and other information of or relating to the Assets, the Assumed Liabilities and the Branch
Employees; provided , however , that nothing herein shall afford Purchaser the right to review any information to the extent
relating solely to loans held by Seller, including information
  
                                                                 34
regarding borrowers, or any information to the extent relating solely to Seller’s other branches, facilities and operations not
subject to this Agreement. Seller shall identify to Purchaser, within seven (7) calendar days after the date hereof, a group of its 
salaried personnel (with the necessary expertise and experience to assist Purchaser) that shall constitute a “transition group” 
who will be available to Purchaser at reasonable times during normal business hours to provide information and assistance in
connection with Purchaser’s investigation of matters relating to the Assets, the Assumed Liabilities and transition matters to
the end that Purchaser receives all Records and information to which Seller currently has access in its operations of the
Branches, the Assets and the Assumed Liabilities. Such transition group will also work cooperatively to identify and resolve
issues arising from any commingling of Records with Seller’s records for its other branches, assets and operations not subject
to this Agreement. Seller shall furnish Purchaser with such additional financial and operating data and other information about
its business operations at the Branches as may be reasonably necessary for the orderly transfer of the business operations of
the Branches and for purposes of enabling Purchaser to comply with its securities law disclosure obligations; provided ,
however , that nothing herein shall afford Purchaser the right to review any information relating to loans held by Seller,
including information regarding borrowers or any information relating to Seller’s other branches, facilities and operations not
subject to this Agreement. Any investigation pursuant to this Section 7.2(a) shall be conducted in such manner as not to 
interfere unreasonably with the conduct of Seller’s business. Without limiting the generality of the foregoing, Purchaser may
meet with Branch Employees, as well as with any regional directors who have responsibility for the Branches, promptly
following execution of this Agreement and through the Closing to discuss employment retention and other employment related
matters at mutually agreeable times and so long as such meetings do not interfere unreasonably with the conduct of Seller’s
business and Seller is provided advance notice of such meetings and is permitted to have one or more representative(s) of Seller
attend such meetings. Furthermore, Seller will use commercially reasonable efforts to cooperate with Purchaser and will make
available at Purchaser’s reasonable request during the period from the date of this Agreement until the Closing Date, during
business hours and without unreasonably interfering with the operations of Seller, Seller’s experienced technical personnel for
consultations with Purchaser concerning transition matters and other than the matters referred to in Section 4.1. 
Notwithstanding the foregoing, Seller shall not be required to provide access to or disclose information where such access or
disclosure would result in the loss of any attorney-client privilege or contravene any law, rule, regulation, order, judgment,
decree, or binding agreement entered into and disclosed to Purchaser prior to the date of this Agreement. Seller and Purchaser
shall use commercially reasonable efforts to make appropriate substitute disclosure arrangements under circumstances in which
the restrictions of the preceding sentence apply.

          (b) Seller shall permit Purchaser, at Purchaser’s expense, to cause a “phase I environmental audit” and a “phase II
environmental audit” to be performed at each Branch at any time prior to the Closing Date; provided , however , that Purchaser
shall have the right to conduct a “phase II environmental audit” prior to the Closing only to the extent that a “phase II
environmental audit” is within the scope of additional testing recommended by the “phase I environmental audit” to be
performed as a result of a “Recognized Environmental Condition” (as such term is defined by The American Society for Testing
Materials) that was discovered in the “phase I environmental audit.” Prior to performing any “phase II environmental audits,” 
Purchaser will provide Seller with a copy of its proposed work plan and Purchaser will cooperate
  
                                                                35
in good faith with Seller to address any comments or suggestions made by Seller regarding the work plan. Purchaser and its
environmental consultant shall conduct all environmental assessments pursuant to this Section 7.2(b) at mutually agreeable 
times and so as to or minimize interference with Seller’s operation of its business. Purchaser shall be required to restore each
Owned Real Property to its pre-assessment condition. All costs and expenses incurred in connection with any “phase I
environmental audit” and any “phase II environmental audit,” and any restoration and clean up required to restore each Owned
Real Property to its pre-assessment condition, shall be borne solely by Purchaser.

           (c) From and after the date of this Agreement, Seller shall keep confidential non-public information in its possession
(other than information which was or becomes available to Seller on a non-confidential basis from a source other than Purchaser
or any of its Affiliates) relating to Purchaser, its Affiliates, the Branches, the Assets and the Assumed Liabilities; provided ,
however , that Seller shall not be liable hereunder with respect to any disclosure to the extent such disclosure is required
pursuant to legal process (including pursuant to the assertion of Seller’s rights under this Agreement) (by interrogatories,
subpoena, civil investigative demand or similar process), regulatory process or request, or to the extent such disclosure is
reasonably necessary for purposes of compliance by Seller or its Affiliates with tax or regulatory reporting requirements;
provided that in the event of any disclosure pursuant to legal process Seller exercises commercially reasonable efforts to
preserve the confidentiality of the non-public information disclosed, including by cooperating with Purchaser to obtain an
appropriate protective order or other reliable assurance that confidential treatment will be accorded the non-public information
required to be disclosed.

            (d) From and after the Closing, Purchaser shall keep confidential non-public information in its possession (other than
information which was or becomes available to Purchaser on a non-confidential basis from a source other than Seller or any of
its Affiliates) relating to Seller and its Affiliates other than the Branches, the Assets and the Assumed Liabilities; provided ,
however that Purchaser shall not be liable hereunder with respect to any disclosure to the extent such disclosure is required
pursuant to legal process (including pursuant to the assertion of Purchaser’s rights under this Agreement) (by interrogatories,
subpoena, civil investigative demand or similar process) or regulatory process or request; provided that in the event of any
disclosure pursuant to legal process Purchaser exercises commercially reasonable efforts to preserve the confidentiality of the
non-public information disclosed, including by cooperating with Seller to obtain an appropriate protective order or other reliable
assurance that confidential treatment will be accorded the non-public information required to be disclosed.

      7.3. Regulatory Approvals . (a) As soon as practicable and in no event later than thirty (30) calendar days after the date of 
this Agreement, Purchaser shall prepare and file any applications, notices and filing required in order to obtain the Regulatory
Approvals. Purchaser shall use commercially reasonable efforts to obtain each such approval as promptly as reasonably
practicable and Purchaser shall not, and shall cause its Affiliates not to, knowingly take any action that would reasonably be
expected to have the effect of denying or materially delaying or conditioning such approval. Seller shall cooperate in connection
therewith (including the furnishing of any information and any reasonable undertaking or commitments that may be required to
obtain the Regulatory Approvals). Each party will provide the other with copies of any applications and all correspondence
relating thereto prior to filing, other than material filed
  
                                                                36
in connection therewith under a claim of confidentiality. Subject to Sections 10.1(f) and 10.1(g), if any Regulatory Authority
shall require the modification of any of the terms and provisions of this Agreement as a condition to granting the Regulatory
Approvals, the parties hereto will negotiate in good faith and use commercially reasonable efforts to seek a mutually agreeable
adjustment to the terms of the transaction contemplated hereby, such agreement not to be unreasonably withheld, conditioned
or delayed.

          (b) The parties shall promptly advise each other upon receiving any communication from any Regulatory Authority
whose consent or approval is required for consummation of the transactions contemplated by this Agreement that causes such
party to believe that there is a reasonable likelihood that the Regulatory Approvals or any other consent or approval required
hereunder will not be obtained or that the receipt of any such approval will be materially delayed or conditioned.

      7.4. Consents . (a) Seller agrees to use commercially reasonable efforts, at its sole expense, to obtain from lessors under 
Branch Leases and counterparties under Assumed Contracts and any other parties the consent of which is required in order to
assign or transfer any Asset or Deposit to Purchaser on the Closing Date, any required consents to such assignment or transfer
to Purchaser on the Closing Date; provided that, in the case of any Branch Lease or Assumed Contract, if any consent set forth
in this Section 7.4(a) is not obtained notwithstanding Seller’s use of commercially reasonable efforts as required hereunder, the
parties shall negotiate in good faith and Seller and Purchaser shall use commercially reasonable efforts to make alternative
arrangements reasonably satisfactory to Purchaser that provide Purchaser, to the maximum extent reasonably possible, the
benefits and burdens of the properties subject to Branch Leases and Assumed Contracts in a manner that does not violate the
applicable Branch Lease or Assumed Contract (for the same cost as would have applied if the relevant consent had been
obtained). Notwithstanding the foregoing, with respect to the Assumed Contracts, if Seller is unable to obtain any consent
contemplated by this Section 7.4(a) after using its commercially reasonable efforts, Seller may terminate the applicable Assumed 
Contract at Purchaser’s sole expense, it being agreed that effective as of such termination, such Assumed Contract shall not
constitute an Asset under this Agreement. If any alternative arrangement is implemented between Seller and Purchaser at or
prior to the Closing, the parties shall continue after the Closing to exercise commercially reasonable efforts to obtain the related
consents that could not be obtained prior to the Closing, and, if such a consent is obtained, Seller shall assign to Purchaser the
applicable Branch Lease pursuant to the terms of this Agreement applicable to leases assigned at the Closing, and the parties
shall restructure the applicable alternative arrangement. Nothing in this Section 7.4(a) or any alternative arrangement shall be 
deemed to excuse any party hereto from its obligations under any other provision of this Agreement or shall be deemed a
waiver of any other rights hereunder.

           (b) Unless otherwise directed by Purchaser, Seller shall use commercially reasonable efforts to procure estoppel
certificates substantially in the form of Schedule 7.4(b)-1 attached hereto, from each lessor under Branch Leases, and in the form
of Schedule 7.4(b)-2 from each subtenant under Tenant Leases, which certificates shall be at the expense of Purchaser;
provided that in the case of any Branch Lease, if any estoppel certificate as set forth in this Section 7.4(b) is not obtained, 
notwithstanding Seller’s use of commercially reasonable efforts as required hereunder, the Assets and Assumed Liabilities
associated with the subject
  
                                                                37
Branch shall be transferred to Purchaser and the parties shall negotiate in good faith and Seller shall use commercially
reasonable efforts to make alternative arrangements reasonably satisfactory to Purchaser with respect to such Branch Lease.

          (c) Seller will use commercially reasonable efforts to procure subordination, attornment and non-disturbance
agreements from any mortgage lender holding a mortgage lien on any Real Property at which a Branch Lease is operated,
substantially in the form of Schedule 7.4(c); provided , however , Seller shall not be obligated to incur any monetary obligations
or expenditures in connection with the utilization of commercially reasonable efforts to obtain such subordination, attornment
and non-disturbance agreements.

      7.5. Efforts to Consummate; Further Assurances . (a) Purchaser and Seller agree to use commercially reasonable efforts to 
satisfy or cause to be satisfied as soon as practicable their respective obligations hereunder and the conditions precedent to
the Closing.

          (b) From time to time following the Closing, at Purchaser’s request and at Purchaser’s expense, Seller will duly execute
and deliver such assignments, bills of sale, deeds, acknowledgments and other instruments of conveyance and transfer and
take such other action as shall be necessary or appropriate to vest in Purchaser the full legal and equitable title to the Assets
and Assumed Liabilities or to consummate the transactions contemplated by this Agreement.

           (c) Subject to Section 4.3, on and after the Closing Date, each party will promptly deliver to the other, at such other 
party’s expense, all mail and other communications properly addressable or deliverable to the other as a consequence of the
P&A Transaction; and without limitation of the foregoing, on and after the Closing Date, Seller shall promptly forward any mail,
communications or other material relating to the Deposits or the Assets transferred on the Closing Date, including that portion
of any IRS “B” tapes that relates to such Deposits, to such employees of Purchaser at such addresses as may from time to time
be specified by Purchaser in writing.

           (d) Prior to the Closing Date, each of the parties hereto shall promptly advise the other party of any change or event
that, individually or in the aggregate, would reasonably be expected to cause or constitute a breach in any material respect of
any of its representations, warranties or covenants contained herein.

      7.6. Non-Solicitation/Non-Competition . (a) For a period of three (3) years following the Closing Date, Seller agrees that it 
shall not (and FBC agrees that it shall not, and shall cause FBC’s Affiliates not to) (i) establish or maintain any banking, branch 
banking, loan production or agency office or operation in the Atlanta MSA that solicits or accepts deposits or deposit, lending,
leasing, financing or cash management relationships, (ii) solicit deposits or deposit relationships from customers or potential 
customers residing or having a place of business in the Atlanta MSA, or (iii) solicit or target for solicitation, directly or 
indirectly, customers of the Branches or depositors associated with the Deposits to (A) provide deposit, safe deposit, trust or 
other financial services relationships or (B) terminate or reduce their relationships with Purchaser or any of its Affiliates; 
provided , however , that this Section 7.6(a) shall not prohibit (1) engaging in servicing (including collection and foreclosure 
activities), modification, or refinancing of
  
                                                                 38
loans serviced, originated or owned by Seller as of the Closing Date, (2) responding to unsolicited inquiries by such customers 
with respect to banking or other financial services, (3) general solicitation through mass media that are not specifically directed, 
in whole or in part, at the Atlanta MSA, or (4) continuing to (1) conduct Seller’s national residential first mortgage business (as
described in the fifth paragraph on page 3 of FBC’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010) 
and (2) gather deposits and provide commercial financial products and services to current and future commercial customers; 
provided , however , that this exception shall not permit the establishment or maintenance of bank branches within the Atlanta
MSA. The restrictions set forth in this Section 7.6(a) shall not apply to the banking, branch banking, loan production or agency 
offices or operations of any Person who (A) as of the date hereof, is not an Affiliate of FBC and (B) following the date hereof, 
acquires Seller or FBC substantially in its entirety (without consideration of the Assets and Assumed Liabilities) in a
transaction in which (1) Persons who are directors of FBC prior to the consummation of the transaction do not constitute upon 
the consummation of such transaction a majority of the board of directors of the Person which survives such transaction (or the
publicly traded parent thereof) and (2) the holders of the common stock of FBC hold upon the consummation of such 
transaction less than 50% of the shares of equity securities normally entitled to vote in the election of directors of such Person
(such Person, an “ Acquiring Person ”); provided, however that, in no event, shall an Acquiring Person be permitted to use the
“Flagstar” name in connection with any activity otherwise restricted by this Section 7.6(a) for three (3) years following the 
Closing Date; and provided, further , that nothing in this sentence shall be construed to permit any of FBC, Seller, any
Acquiring Person or any of their respective Affiliates to employ any Records in order to conduct or facilitate any solicitation or
targeting contemplated by the first sentence of this Section 7.6(a). Furthermore, the restrictions set forth in this Section 7.6(a) 
shall not prohibit FBC, Seller or any of their respective Affiliates from, after the date that is eighteen (18) months after the date 
of this Agreement, (1) consummating the purchase or acquisition (through merger, stock purchase or purchase of all or 
substantially all of the assets in a transaction not subject to the immediately preceding sentence) any unaffiliated third party
(the “ Target Entity ”) that operates banking, branch banking, loan production or agency offices or operations within the
Atlanta MSA and (2) continuing to operate such offices and operations thereafter, in either case so long as the aggregate 
deposits of the Target Entity within the Atlanta MSA do not exceed 5% of the aggregate deposits of Purchaser within the
Atlanta MSA (based on call reports as of the most recent June 30 date preceding the date of such consummation). 

              (b) For a period of eighteen (18) months following the Closing Date, FBC and Seller will not, and shall cause their 
respective Affiliates not to, solicit for employment or employ any Transferred Employee; provided , however , that nothing in
this Section 7.6(b) shall be deemed to prohibit Seller, FBC and/or their respective Affiliates from (i) making general solicitations 
not targeted at Transferred Employees (including job announcements in newspapers and industry publications or on the
Internet), (ii) soliciting any Transferred Employee whose employment is terminated by Purchaser prior to FBC or Seller, and/or 
any of their Affiliates, soliciting such Transferred Employee or (iii) using employee search firms, so long as such employee 
search firms are not instructed to and do not engage in targeted solicitations of Transferred Employees, and, in the case of (i),
(ii) or (iii), thereafter employing such Transferred Employee. 
  
                                                                  39
           (c) If any provision or part of this Section 7.6 is held by a court or other authority of competent jurisdiction to be 
invalid or unenforceable, the parties agree that the court or authority making such determination will have the power to reduce
the duration or scope of such provision or to delete specific words or phrases as necessary (but only to the minimum extent
necessary) to cause such provision or part to be valid and enforceable. If such court or authority does not have the legal
authority to take the actions described in the preceding sentence, the parties agree to negotiate in good faith a modified
provision that would, in so far as possible, reflect the original intent of this Section 7.6 without violating applicable law. 

      7.7. Insurance . Seller will maintain in effect until the Closing Date all casualty and public liability policies relating to the
Branches and maintained by Seller on the date hereof or will use commercially reasonable efforts to procure comparable
replacement coverage and maintain such policies or replacement coverage in effect until the Closing Date. Purchaser shall
provide all casualty and public liability insurance for the Branches after the Closing Date. In the event of any material damage,
destruction or condemnation affecting Real Property between the date hereof and the time of the Closing, Purchaser shall have
the right to exclude any Real Property so affected from the Assets to be acquired, require Seller to take reasonable steps to
repair or replace the damaged or destroyed property, or require Seller to deliver to Purchaser any insurance proceeds and other
payments, to the extent of the fair market value or the replacement cost of the Real Property, received by Seller as a result
thereof unless, in the case of damage or destruction, Seller has repaired or replaced the damaged or destroyed property.

       7.8. Change of Name, Etc. (a) As promptly as possible after the Closing, but in no event after termination of the Post-
Closing Processing Period, Purchaser will (a) change the name and logo on all documents and facilities relating to the Assets 
and the Assumed Liabilities to Purchaser’s name and logo, (b) notify all Persons whose Deposits or Safe Deposit Agreements 
are transferred under this Agreement of the consummation of the transactions contemplated by this Agreement, and (c) provide 
all appropriate notices to the OCC and any other Regulatory Authorities required as a result of the consummation of such
transactions. From and after the date of this Agreement, Seller shall cooperate with any commercially reasonable request of
Purchaser directed to accomplish the removal of Seller’s signage by Purchaser and the installation of Purchaser’s signage by
Purchaser; provided , however , that (i) all such removals and all such installations shall be at the expense of Purchaser, (ii) such 
removals and installations shall be performed in such a manner that does not unreasonably interfere with the normal business
activities and operations of the Branches and Purchaser shall repair any damage to the area altered to its pre-existing condition,
(iii) such installed signage shall comply with the applicable Branch Lease and all applicable zoning and permitting laws and 
regulations, (iv) such installed signage shall have, if necessary, received the prior approval of the owner or landlord of the 
facility, and such installed signage shall be covered in such a way as to make Purchaser signage unreadable at all times prior to
the Closing, but such cover shall display the name and/or logo of Seller (or of its Affiliates) in a manner reasonably acceptable
to Seller and (v) if this Agreement is terminated prior to the Closing, Purchaser shall immediately and at its sole expense restore 
such signage and any other area altered in connection therewith to its pre-existing condition.
  
                                                                   40
           (b) Seller hereby grants to Purchaser a nonexclusive, paid up, royalty-free, non-sublicensable right and license to use
the Seller’s IP during the Post-Closing Processing Period for the purposes set forth herein, subject to the following:
                (i) Beginning on the Closing Date and during the Post-Closing Processing Period, Purchaser will use the Seller’s
           IP only as reasonably necessary to carry out the purposes set forth in this Agreement.
                 (ii) Purchaser agrees that it will not, directly or indirectly, do anything or cooperate with or assist any person in
           doing anything, in either case in connection with the rights being granted to Purchaser under this Section 7.8(b), 
           knowing such action to be adverse to the sole and exclusive ownership by Seller of the Seller’s IP. Purchaser agrees
           that nothing in this license shall give Purchaser any right, title, or interest in the Seller’s IP, except as a licensee.
           Purchaser agrees that it will not, directly or indirectly, contest or knowingly cooperate or assist any third party in
           contesting the title of Seller to the Seller’s IP. Purchaser shall not file federal, state, or foreign trademark applications
           that are the same as or confusingly or deceptively similar to the Seller’s IP.

           (c) Purchaser agrees that any use of the Seller’s IP in the maintenance and ownership of the Assets and the Branches
after the Closing shall be provided in accordance with all applicable legal requirements and with the additional terms and
conditions as set forth in this Agreement, and that the same shall not reflect adversely in any material respect upon the good
name of Seller and that the maintenance and ownership of the Assets and the Branches, insofar as it reflects upon Seller by
reason of the use by Purchaser of Seller’s IP, will be of a standard, skill and quality that is at least commensurate in all material
respects with the standard, skill and quality employed by Purchaser (and acknowledged by Seller) in the operation of its branch
banking business as of the date of execution of this Agreement.

           (d) Purchaser agrees, from time to time as may be reasonably requested by Seller during the Post-Closing Processing
Period, to furnish Seller samples of materials bearing the Seller’s IP at no charge to Seller, in order to permit Seller to inspect
same to determine compliance with this Section 7.8. In addition, Purchaser shall grant to Seller reasonable access to the 
Branches, upon reasonable advance request of Seller and in a manner that will not unreasonably interfere with the operations of
the Branches, to permit Seller to verify that the Branches are being operated in compliance with the requirements of this
Agreement.

     7.9. Exclusive Dealing . During the period from the date of this Agreement to the earlier of the Closing Date or the
termination of this Agreement, neither Seller nor FBC, nor any of their Affiliates, shall take any action to, directly or indirectly,
encourage, initiate or conduct discussions or negotiations with, or provide any non-public information to, or enter into any
agreement or consummate any transaction with, any Person other than Purchaser and its Affiliates and representatives
concerning or in contemplation of a sale of any of the Assets or assignment and assumption of any of the Assumed Liabilities;
provided that the provisions of this Section 7.9 shall no longer apply following Seller’s receipt of a written notice from
Purchaser that Purchaser, in accordance with the terms of this Agreement, will not consummate the transactions contemplated
by this Agreement.
  
                                                                   41
      7.10. Option Branch Lease Agreements . On or prior to the Closing, Purchaser and Seller shall enter into separate lease
agreements with respect to each Option Branch with each such lease agreement having the terms set forth on Schedule 7.10
(collectively, the “ Option Branch Lease Agreements ”).

     7.11. Treasury Management Agreements . At the request of Purchaser with Seller’s consent, prior to the Closing, Seller and
Purchaser shall negotiate and work together in good faith to facilitate the assignment to Purchaser at the Closing of Seller’s
agreements under which Seller provides treasury management products and services to Branch customers.


                                                            ARTICLE 8

                                               TAXES AND EMPLOYEE BENEFITS

     8.1. Proration of Taxes . For purposes of this Agreement, in the case of any Straddle Period, (i) Property Taxes for the Pre-
Closing Tax Period shall be equal to the amount of such Property Taxes for the entire Straddle Period multiplied by a fraction,
the numerator of which is the number of days during the Straddle Period that are in the Pre-Closing Tax Period and the
denominator of which is the number of days in the entire Straddle Period, and (ii) Taxes (other than Property Taxes) for the Pre-
Closing Tax Period shall be computed as if such taxable period ended as of the close of business on the Closing Date.

     8.2. Sales and Transfer Taxes . Seller and Purchaser shall be equally responsible for the payment of all transfer, recording,
documentary, stamp, sales, use (including all bulk sales Taxes) and other similar Taxes and fees (collectively, the “ Transfer
Taxes ”), that are payable or that arise as a result of the P&A Transaction, when due. Seller shall file any Tax Return that is
required to be filed in respect of Transfer Taxes described in this Section 8.2 when due, and Purchaser shall cooperate with 
respect thereto as necessary.

     8.3. Information Returns . At the Closing or as soon thereafter as is practicable, Seller shall provide Purchaser with a list of
all Deposits on which Seller is back-up withholding as of the Closing Date.

     8.4. Payment of Amount Due under Article 8 . Any payment by Seller to Purchaser, or to Seller from Purchaser, under this
Article 8 (other than payments required by Section 8.2, which shall be paid when determined) to the extent due at the Closing 
may be offset against any payment due the other party at the Closing. All subsequent payments under this Article 8 shall be
made as soon as determinable and shall be made and bear interest from the date due to the date of payment as provided in
Section 3.2(b). 

     8.5. Assistance and Cooperation . After the Closing Date, each of Seller and Purchaser shall:

         (a) Make available to the other and to any taxing authority as reasonably requested all relevant information, records,
and documents relating to Taxes with respect to the Assets, the Assumed Liabilities, or the operation of the Branches;
  
                                                                 42
          (b) Provide timely notice to the other in writing of any pending or proposed Tax audits (with copies of all relevant
correspondence received from any taxing authority in connection with any Tax audit or information request) or Tax assessments
with respect to the Assets, the Assumed Liabilities, or the operation of the Branches for taxable periods for which the other may
have a liability under this Agreement; and

          (c) The party requesting assistance or cooperation shall bear the other party’s reasonable out-of-pocket expenses in
complying with such request to the extent that those expenses are attributable to fees and other costs of unaffiliated third party
service providers.

     8.6. Tax Treatment of Indemnification Payments . Except as otherwise required pursuant to a “determination” within the
meaning of Section 1313(a) of the Code (or any comparable provision of state, local or foreign Law), Seller, Purchaser, and their 
respective Affiliates shall treat any and all payments under Article 11 as an adjustment to the Purchase Price for all Tax
purposes.

     8.7. Transferred Employees .

          (a) Offers of Employment .
                (i) General . At least fifteen (15) calendar days prior to the Closing Date, and effective as of the Closing Date, 
          Purchaser agrees that it shall, or shall cause one of its Affiliates to, offer employment to each Branch Employee who is
          actively employed by Seller as of the Closing Date and, subject to Section 8.7(a)(ii) below, to each Leave Recipient, 
          and, effective as of the applicable Transfer Date, Purchaser will employ each such employee who has accepted the
          offer, remains in good standing with Seller and satisfies all employment screening requirements of Purchaser. On and
          after the Closing Date, each Branch Employee employed by Purchaser, as of the Transfer Date, shall be considered a “ 
          Transferred Employee ” for purposes of this Agreement. Each Transferred Employee’s employment with Seller shall
          cease as of the applicable Transfer Date. Subject to the provisions of this Section 8.7, Transferred Employees shall be 
          subject to the employment terms, conditions and rules applicable to other similarly situated employees of Purchaser.
          Nothing contained in this Agreement shall be construed as an employment contract between Purchaser and any
          Branch Employee or Transferred Employee.
               (ii) Special Provisions for Leave Recipients . With respect to any Branch Employee who is not actively at work
          on the Closing Date as a result of an approved leave of absence (including military leave with reemployment rights
          under federal law and leave under the Family and Medical Leave Act of 1993) (collectively, the “ Leave Recipients ”),
          Purchaser shall make an offer of employment in the manner required by Section 8.7(a)(i), contingent on such Leave 
          Recipient’s return to active status (x) to any Branch Employee on military leave at the Closing Date who actively 
          commences employment with Purchaser within the time period mandated by applicable law and (y) for any other 
          Leave Recipients within one-hundred and eighty (180) days following the Closing Date. When the Leave Recipient 
          returns to active status pursuant to the terms hereof, such Leave Recipient shall be considered a Transferred
          Employee.
  
                                                                43
          (b) Terms of Offer . Each Transferred Employee shall be provided employment subject to the following terms and
conditions:
               (i) Each Transferred Employee’s base salary shall be at least equivalent to the rate of annual base salary or
          regular hourly wage rate, as applicable, paid by Seller to such Transferred Employee as of the Business Day prior to
          the Closing Date; and
                (ii) Each Transferred Employee shall be eligible to receive employee benefits substantially comparable to those
          available to similarly situated employees of Purchaser, as in effect from time to time, and Purchaser shall permit each
          Transferred Employee whose position is eliminated by Purchaser or any of its Affiliates following the Transfer Date to
          participate in Purchaser’s displacement benefits plan, with credit for past service and subject to such plan’s terms and
          conditions, including the Transferred Employee’s execution and non-revocation of a release of claims in a form
          satisfactory to Purchaser.

           (c) Each Transferred Employee shall be eligible to participate in the medical and dental plans of Purchaser and in other
welfare plans of Purchaser to the extent the terms of such other welfare plans permit admission of new hires, as such plans may
exist, on and after the applicable Transfer Date, subject to the applicable terms and conditions of such plans in effect from time
to time. For purposes of each New Plan providing medical, dental, pharmaceutical and/or vision benefits to any Transferred
Employee, Purchaser shall cause any pre-existing condition exclusions and actively-at-work requirements of such New Plan to
be waived for such employee and his or her covered dependents (it being understood that general requirements of formal
employment with Purchaser shall not be waived), and Purchaser shall cause any eligible expenses incurred by such employee
and his or her covered dependents during the portion of the plan year of the Benefit Plan ending on the date such employee’s
participation in the corresponding New Plan begins to be taken into account under such New Plan for purposes of satisfying all
deductible, coinsurance and maximum out-of-pocket requirements applicable to such employee and his or her covered
dependents for the applicable plan year as if such amounts had been paid in accordance with such New Plan; provided, that
Seller provides Purchaser as promptly as practicable, but in no event later than thirty (30) calendar days following a request 
therefor, with such data as may be reasonably requested by Purchaser in connection therewith (whether from Seller or the
applicable plan administrator or insurer), and Seller delivers to Purchaser an update of such information as of the Closing Date
(or any such later Transfer Date) no later than sixty (60) days following the Closing Date (or any such later Transfer Date). In 
addition, for purposes of (i) any New Plan providing short-term disability benefits to the Transferred Employee after the
Transfer Date and (ii) accruals under any New Plan providing vacation benefits to a Transferred Employee after the Transfer 
Date, each Transferred Employee shall be credited with his or her years of service from his or her most recent date of hire with
Seller or any predecessor of Seller before the Transfer Date, to the same extent as such Transferred Employee was entitled,
before the Transfer Date, to credit for such service under any analogous benefits plans of Seller.
  
                                                                44
          (d) On the Closing Date (or any such later Transfer Date), Seller shall take all necessary action to cause the
Transferred Employees to be fully vested in their accounts and accrued benefits, as applicable under any tax-qualified savings
plan in which the Transferred Employees are eligible to participate in.

            (e) Seller shall remain solely responsible for any and all liabilities and obligations arising under the Benefit Plans,
including the Employment Agreements, and Purchaser shall not assume or otherwise acquire any of the Benefit Plans, including
the Employment Agreements, or the liabilities thereunder. Seller shall pay, discharge, and be responsible for (i) all salary and 
wages arising out of employment of each Transferred Employee through the applicable Transfer Date and (ii) any employee 
benefits (including accrued vacation and sick days, as applicable) arising under Seller’s employee benefit plans and employee
programs prior to the applicable Transfer Date, including (x) benefits and workers’ compensation with respect to claims incurred
prior to the Transfer Date but reported after the Transfer Date and (y) severance, including any liability under the WARN Act, 
payable to or with respect to any Transferred Employee solely as a result of the cessation of such Transferred Employee’s
employment with Seller and its Affiliates pursuant to and in accordance with the terms and conditions of any severance plan of
Seller and its Affiliates applicable to such Transferred Employee as of immediately prior to the Transfer Date. For purposes
hereof, a disability or workers’ compensation claim shall be considered incurred before the relevant Transferred Employee’s
Transfer Date if the injury or condition giving rise to the claim occurs before such Transfer Date. For purposes of this
Agreement, the liabilities described in the preceding sentences of this Section 8.7(e) shall for all purposes of this Agreement be 
considered Excluded Liabilities. From and after the applicable Transfer Date, Purchaser shall pay, discharge, and be responsible
for all salary, wages, and benefits arising out of or relating to the employment of each Transferred Employee by Purchaser from
and after the applicable Transfer Date, including all claims under Purchaser’s welfare benefits plans incurred after the applicable
Transfer Date.

           (f) Nothing in this Agreement shall be construed to grant any Branch Employee or Transferred Employee a right to
continued employment by, or to receive any payments or benefits from, Purchaser or Seller or their respective Affiliates or
through any employee benefit plan. This Agreement shall not limit Purchaser’s or Purchaser’s Affiliate’s ability or right to
amend or terminate any benefit or compensation plan or program of Purchaser or its Affiliates and nothing contained herein
shall be construed as an amendment to or modification of any such plan. This Section 8.7 shall be binding upon and inure solely 
to the benefit of each party to this Agreement, and nothing in this Section 8.7, express or implied, is intended to confer upon 
any other Person, including, any current or former director, officer or employee of Seller or any of its Affiliates, any rights or
remedies of any nature whatsoever under or by reason of this Section 8.7. 
  
                                                                45
                                                             ARTICLE 9

                                                   CONDITIONS TO CLOSING

    9.1. Conditions to Obligations of Purchaser . Unless waived in writing by Purchaser, the obligation of Purchaser to
consummate the P&A Transaction is conditioned upon satisfaction of each of the following conditions:

          (a) Regulatory Approvals . The Regulatory Approvals shall have been made or obtained, and shall remain in full force
and effect, and all waiting periods applicable to the consummation of the P&A Transaction shall have expired or been
terminated.

          (b) Orders . No court or governmental authority of competent jurisdiction shall have enacted, issued, promulgated,
enforced or entered any statute, rule, regulation, judgment, decree, injunction or other order (whether temporary, preliminary or
permanent) (any of the foregoing, an “ Order ”) that is in effect and that prohibits or makes illegal the consummation of the P&A
Transaction.

           (c) Representations and Warranties . (i) The representations and warranties of Seller contained in Sections 5.1, 5.2(i), 
5.12, 5.14(a)(ii), 5.16 and 5.17 shall be true and correct in all respects, and the representations and warranties of Seller contained
in Sections 5.9, 5.10 and 5.13 shall be true and correct in all material respects, in each case at and as of the date of this
Agreement and at and as of the Closing Date as though such representations and warranties were made at and as of such time
(except that representations and warranties as of a specified date need only be true on and as of such date) and (ii) the other 
representations and warranties of Seller contained in this Agreement shall be true in all respects, in each case at and as of the
date of this Agreement and at and as of the Closing Date as though such representations and warranties were made at and as of
such time (except that representations and warranties as of a specified date need only be true on and as of such date);
provided , however , that for purposes of determining the satisfaction of the condition set forth in this Section 9.1(c)(ii), such 
representations and warranties shall be deemed to be so true and correct if the failure or failures of such representations and
warranties to be true and correct (such representations and warranties to be read for this purpose without reference to any
qualification set forth therein relating to “materiality” or “Material Adverse Effect”) do not constitute, individually or in the
aggregate, a Material Adverse Effect with respect to Seller.

          (d) Covenants and Other Agreements . Seller shall have performed its covenants and agreements herein on or prior to
the Closing Date in all material respects.

          (e) Seller Officers’ Certificate . Purchaser shall have received at the Closing a certificate dated as of the Closing Date
and executed by the Chief Executive Officer, the Chief Financial Officer, the President or any Executive Vice President or Senior
Vice President of Seller to the effect that each of the conditions specified above in Sections 9.1(c) and (d) are satisfied in all 
respects.
  
                                                                  46
         (f) Seller Closing Deliverables . Seller shall have delivered to Purchaser each of the certificates, instruments,
agreements, documents and other items required to be delivered pursuant to Section 3.5 at or prior to the Closing Date. 

          (g) No Material Adverse Effect . No Material Adverse Effect with respect to Seller shall have occurred since June 30, 
2011.

   9.2. Conditions to Obligations of Seller . Unless waived in writing by Seller, the obligation of Seller to consummate the
P&A Transaction is conditioned upon satisfaction of each of the following conditions:

          (a) Regulatory Approvals . The Regulatory Approvals shall have been made or obtained, and shall remain in full force
and effect, and all waiting periods applicable to the consummation of the P&A Transaction shall have expired or been
terminated.

          (b) Orders . No Order shall be in effect that prohibits or makes illegal the consummation of the P&A Transaction.

           (c) Representations and Warranties . The representations and warranties of Purchaser contained in this Agreement
shall be true in all respects in each case at and as of the date of this Agreement and at and as of the Closing Date as though
such representations and warranties were made at and as of such time (except that representations and warranties as of a
specific date need to be true only as of such date); provided , however , that for purposes of determining the satisfaction of the
condition set forth in this Section 9.2(c), such representations and warranties shall be deemed to be so true and correct if the 
failure or failures of such representations and warranties to be true and correct (such representations and warranties to be read
for this purpose without reference to any qualification set forth therein relating to “materiality” or “Material Adverse Effect”) do
not constitute, individually or in the aggregate, a Material Adverse Effect with respect to Purchaser.

           (d) Covenants and Other Agreements . Purchaser shall have performed its covenants and agreements herein on or
prior to the Closing Date in all material respects.

          (e) Purchaser Officers’ Certificate . Seller shall have received at the Closing a certificate dated as of the Closing Date
and executed by the Chief Executive Officer, the Chief Financial Officer, the President or any Executive Vice President or Senior
Vice President of Purchaser to the effect that each of the conditions specified above in Sections 9.2(c) and (d) are satisfied in all 
respects.

         (f) Purchaser Closing Deliverables . Purchaser shall have delivered to Seller each of the certificates, instruments,
agreements, documents and other items required to be delivered pursuant to Section 3.6 (in the case of any assignment 
contemplated thereby, subject to delivery by Seller of any related requisite third-party consent) at or prior to the Closing Date.
  
                                                                 47
                                                             ARTICLE 10

                                                           TERMINATION

     10.1. Termination . This Agreement may be terminated at any time prior to the Closing Date:

          (a) by the mutual written agreement of Purchaser and Seller;

            (b) by Purchaser if (i) at the time of such termination any of the representations and warranties of Seller contained in 
this Agreement shall not be true and correct to the extent that the condition set forth in Section 9.1(c) cannot be satisfied, or 
(ii) there shall have been any breach of any covenant, agreement or obligation of Seller or FBC hereunder to the extent that the 
condition set forth in Section 9.1(d) cannot be satisfied, and, in the case of (i) or (ii) such breach or failure is not or cannot be 
remedied by Seller or FBC within thirty (30) calendar days after receipt of notice in writing from Purchaser specifying the nature 
of such breach or failure and requesting that it be remedied; provided , however , there shall not be any thirty (30) calendar-day
cure period for any breach of Sections 7.6 or 7.9; and, provided ,further , that Purchaser may not terminate this Agreement
based upon the failure of the conditions set forth in Section 9.1(c) or Section 9.1(d) to be satisfied if such failure was solely 
caused by Purchaser’s breach of this Agreement or failure to act in good faith or Purchaser’s or any of its representative’s
failure to use commercially reasonable efforts to cause the Closing to occur;

            (c) by Seller, if (i) at the time of such termination any of the representations and warranties of Purchaser contained in 
this Agreement shall not be true and correct to the extent that the condition set forth in Section 9.2(c) cannot be satisfied, or 
(ii) there shall have been any breach of any covenant, agreement or obligation of Purchaser hereunder to the extent that the 
condition set forth in Section 9.2(d) cannot be satisfied, and, in the case of (i) or (ii), such breach or failure is not or cannot be 
remedied by Purchaser within thirty (30) days after receipt of notice in writing from Seller specifying the nature of such breach 
or failure and requesting that it be remedied; provided that Seller may not terminate this Agreement based upon the failure of
the conditions set forth in Section 9.2(c) or Section 9.2(d) to be satisfied if such failure was solely caused by Seller’s or any of
its representative’s failure to act in good faith or Seller’s breach of this Agreement or failure to use commercially reasonable
efforts to cause the Closing to occur;

       (d) by Seller or Purchaser, in the event the Closing has not occurred by June 15, 2012, unless the failure to so 
consummate is due to a breach of this Agreement by the party seeking to terminate;

           (e) by either Seller or Purchaser, if any governmental agencies or authorities that must grant a Regulatory Approval
has denied approval of the P&A Transaction or any governmental agency or authority of competent jurisdiction shall have
issued a final and nonappealable order permanently enjoining or otherwise prohibiting the consummation of the P&A
Transaction; or
  
                                                                  48
           (f) by Purchaser, if the Regulatory Approvals shall contain or require, as a condition to the granting thereof, (i) any 
modification to any term of this Agreement or the transactions contemplated hereby, (ii) any divestiture of any of the Deposits, 
the Assets or any other assets of Purchaser, or (iii) any extraordinary requirement of, or restriction on the operation of the 
Assets and Assumed Liabilities or otherwise by, Purchaser following the Closing Date, where the conditions referred to in
clauses (i), (ii) or (iii), individually or in the aggregate, would have a material and adverse effect with respect to the business, 
financial condition or results of operations of Purchaser measured on a scale relative to the business represented by the
Branches, Assets and Assumed Liabilities, taken as a whole.

          (g) by Seller, if the Regulatory Approvals shall contain or require, as a condition to the granting thereof, (i) any 
modification to any term of this Agreement or the transactions contemplated hereby, (ii) any divestiture of any of the Deposits, 
the Assets or any other assets of Seller, or (iii) any extraordinary requirement of, or restriction on the operation of Seller 
following the Closing Date, where the conditions referred to in clauses (i), (ii) or (iii), individually or in the aggregate, would 
have a material and adverse effect with respect to the business, financial condition or results of operations of Seller.

      10.2. Effect of Termination . In the event of termination of this Agreement and abandonment of the transactions
contemplated hereby pursuant to Section 10.1, no party hereto (or any of its directors, officers, employees, agents or Affiliates) 
shall have any liability or further obligation to any other party, except that neither Seller nor Purchaser shall be relieved or
released from any liabilities or damages arising out of any willful breach of this Agreement.

                                                           ARTICLE 11

                                                       INDEMNIFICATION

     11.1. Indemnification . (a) Subject to Section 12.1, Seller shall indemnify and hold harmless Purchaser and any Person 
directly or indirectly controlling or controlled by Purchaser, and their respective directors, officers, employees and agents, from
and against any and all Losses asserted against or incurred by Purchaser arising out of or attributable to the following:
               (i) any breach of any representation or warranty made by Seller in this Agreement (any such breach to be
          determined for purposes of this Article 11 without regard to any qualification for “materiality,” “in all material
          respects,” “Material Adverse Effect” or similar materiality qualifications);
               (ii) any breach of any covenant or agreement to be performed by Seller pursuant to this Agreement;
               (iii) any Excluded Taxes; or
               (iv) any Excluded Liability.

          (b) Subject to Section 12.1, Purchaser shall indemnify and hold harmless Seller and any Person directly or indirectly 
controlling or controlled by Seller, and their respective directors, officers, employees and agents from and against any and all
Losses asserted against or incurred by Seller arising out of or attributable to the following:
               (i) any breach of any representation or warranty made by Purchaser in this Agreement (any such breach to be
          determined for purposes of this Article 11 without regard to any qualification for “materiality,” “in all material
          respects,” “Material Adverse Effect” or similar materiality qualifications);
  
                                                                 49
                (ii) any breach of any covenant or agreement to be performed by Purchaser pursuant to this Agreement; or
               (iii) the Assumed Liabilities or any legal action, administrative or judicial proceeding, claim, penalty, liability,
          obligation or duty to the extent arising out of Purchaser’s operation after the Closing of the business represented by
          the Branches, the Assets or the Assumed Liabilities.

           (c) In the event any indemnified party becomes aware of any act, circumstance, development, event, fact, occurrence,
statement or omission with respect to which a claim for Losses may be asserted under this Article 11 that is not a Third Party
Claim (a “ Direct Claim ”), the indemnified party shall promptly deliver notice of such Direct Claim to the indemnifying party in
writing, specifying (to the extent known) the factual basis for such Direct Claim and the amount, or an estimate, if known or
reasonably determinable, of the Losses which the indemnified party claims as a result of such Direct Claim; provided , however ,
that, subject to the Survival Periods set forth in Section 12.1(a), any delay or failure by the indemnified party to give such notice 
shall relieve the indemnifying party of its obligations hereunder only to the extent, if at all, that the indemnifying party is
materially and adversely prejudiced by reason of such delay or failure. If the indemnifying party does not notify the indemnified
party within twenty (20) calendar days following its receipt of such notice that the indemnifying party disputes its liability to the 
indemnified party under this Section 11.1(c), such Direct Claim specified by the indemnified party in such notice shall be 
conclusively deemed a liability of the indemnifying party under this Section 11.1(c) or, in the case of any notice in which the 
amount of the Direct Claim (or any portion thereof) is estimated, on such later date when the amount of such Direct Claim (or
such portion thereof) becomes finally determined. Within ten (10) calendar days of the final determination of the amount of the 
Direct Claim pursuant to the terms of this Section 11.1(c), the indemnifying party shall pay to the indemnified party an amount 
equal to the Direct Claim by wire transfer of immediately available funds to the bank account or accounts designated in writing
by the indemnified party not less than one (1) Business Day prior to such payment. 

           (d) To exercise its indemnification rights under this Section 11.1 as a result of the assertion against it by any third 
party of any claim or potential liability for which indemnification is provided under this Article 11 (a “ Third Party Claim ”), the
indemnified party shall promptly notify the indemnifying party of the assertion of such Third Party Claim, discovery of any such
potential liability or the commencement of any action or proceeding in respect of which indemnity may be sought hereunder;
provided , however , that, subject to the Survival Periods set forth in Section 12.1(a), any delay or failure by the indemnified 
party to give notice shall not relieve the indemnifying party of any liability it may have to such indemnifying
  
                                                                 50
party to the extent that such failure does not actually and materially prejudice the indemnifying party. The indemnified party
shall advise the indemnifying party of all facts relating to such assertion within the knowledge of the indemnified party, and
shall afford the indemnifying party the opportunity, at the indemnifying party’s sole cost and expense, to defend against such
Third Party Claims (which election must be made by the indemnifying party within fifteen (15) calendar days after having been 
notified by the indemnified party of the existence of such Third Party Claims and shall be subject to the indemnifying party’s
admission in writing of its obligation to indemnify the indemnified party for any Losses in respect of the Third Party Claim).
Counsel selected by the indemnifying party to defend any such Third Party Claim shall be a nationally or regionally recognized
law firm with the experience and resources to defend the indemnified party against any such Third Party Claim in any such
proceeding (and shall be consented to by the indemnified party, such consent not to be unreasonably withheld, conditioned or
delayed). In any such action or proceeding, the indemnified party shall have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at its own expense unless (i) the indemnifying party and the indemnified party mutually agree 
to the retention of such counsel, (ii) the indemnifying party fails to elect to assume the defense, in accordance with the terms of 
this Section 11.1(d), of a suit, action or proceeding within the fifteen (15) calendar-day time period, (iii) in the event that the 
indemnifying party elects to assume the defense of a suit, action or proceeding, in the course of such defense, the indemnifying
party fails to continue to take reasonable steps to diligently defend any such Third Party Claim, or (iv) the named parties to any 
such suit, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified
party, and in the reasonable judgment of the indemnified party, representation of the indemnifying party and the indemnified
party by the same counsel would be inadvisable due to actual or potential differing defenses or conflicts of interests between
them that make joint representation inappropriate, then in all such cases of clauses (i), (ii), (iii) and (iv), the indemnifying party 
shall pay, promptly as statements therefor are received, the reasonable fees and expenses of such counsel for the indemnified
parties. Within ten (10) calendar days of determination of the amount of a Third Party Claim becoming non-appealable (whether
as a result of procedural exhaustion or lapse of time), the indemnifying party shall pay to the indemnified party an amount equal
to the Third Party Claim by wire transfer of immediately available funds to the bank account or accounts designated in writing
by the indemnified party not less than one (1) Business Day prior to such payment. 

           (e) Neither party to this Agreement shall settle, compromise, discharge or consent to an entry of judgment with
respect to a claim or liability subject to indemnification under this Article 11 without the other party’s prior written consent
(which consent shall not be unreasonably withheld, conditioned or delayed); provided that the indemnifying party may agree
without the prior written consent of the indemnified party to any settlement, compromise, discharge or consent to an entry of
judgment in each case that by its terms (i) obligates the indemnifying party to pay the full amount of the liability in connection 
with such claim and that unconditionally releases the indemnified party and its Affiliates from all liability or obligation in
connection with such claim and (ii) does not impose injunctive or other non-monetary equitable relief against the indemnified
party or its Affiliates, or their respective businesses.

          (f) Notwithstanding anything to the contrary contained in this Agreement:
                (i) An indemnifying party shall not be liable under Section 11.1(a)(i) or Section 11.1(b)(i) for any Losses 
          sustained by the indemnified party unless and until the aggregate amount of all indemnifiable Losses sustained by
          the indemnified party in respect of Section 11.1(a)(i) or Section 11.1(b)(i), as applicable, shall exceed $200,000, in which 
          event the indemnifying party shall provide indemnification hereunder in respect of all such indemnifiable Losses in
          excess of $200,000; provided , however, the maximum aggregate amount of indemnification payments payable by
          Seller pursuant to Section 11.1(a)(i) or by Purchaser pursuant to Section 11.1(b)(i), as applicable, shall be $25 million. 
  
                                                                  51
                (ii) In no event shall either party hereto be entitled to consequential or punitive damages or damages for lost
          profits in any action relating to the subject matter of this Agreement; provided that the foregoing shall not limit the
          right of an indemnified party to indemnification in accordance with this Article 11 with respect to any component of
          any claim, settlement, award or judgment against such party by any unaffiliated third party.
                (iii) [Reserved.]
               (iv) Each party shall cooperate, and cause their respective Affiliates to cooperate, fully in all aspects of any
          investigation, defense, pre-trial activities, trial, compromise, settlement or discharge of any claim in respect of which
          indemnity is sought pursuant to this Article 11, including by providing the other party with reasonable access to
          employees and officers (including as witnesses) and other information.

          (g) Notwithstanding the foregoing, if a third-party claim includes or would reasonably be expected to include both a
          indemnity is sought pursuant to this Article 11, including by providing the Taxes ”) and a reasonable access are
claim for Taxes that are Assumed Liabilities pursuant to Section 2.2(a)(vi) (“ Purchaserother party withclaim for Taxes thatto
          employees and officers (including as witnesses) and other information.

           (g) Notwithstanding the foregoing, if a third-party claim includes or would reasonably be expected to include both a
claim for Taxes that are Assumed Liabilities pursuant to Section 2.2(a)(vi) (“ Purchaser Taxes ”) and a claim for Taxes that are
not Assumed Liabilities pursuant to Section 2.2(a)(vi) (“ Seller Taxes ”), and such claim for Seller Taxes is not separable from
such a claim for Purchaser Taxes, Purchaser (if the claim for Purchaser Taxes exceeds or reasonably would be expected to exceed
in amount the claim for Seller Taxes) or otherwise Seller (Seller or Purchaser, as the case may be, the “ Controlling Party ”) shall
be entitled to control the defense of such third-party claim (such third-party claim, a “ Tax Claim ”). In such case, the other party
(Seller or Purchaser, as the case may be, the “ Non-Controlling Party ”) shall be entitled to participate fully (at the Non-
Controlling Party’s sole expense) in the conduct of such Tax Claim and the Controlling Party shall not settle such Tax Claim
without the consent of such Non-Controlling Party (which consent shall not be unreasonably withheld, conditioned or
delayed). The costs and expenses of conducting the defense of such Tax Claim shall be reasonably apportioned based on the
relative amounts of the Tax Claim that are Seller Taxes and that are Purchaser Taxes.

          (h) An indemnified party shall use commercially reasonable efforts to mitigate any claim or liability that such
indemnified party asserts under this Article 11; provided that the indemnified party shall not be required to incur any out-of-
pocket fees or expenses in connection with such mitigation. In the event that an indemnified party shall fail to use such
commercially reasonable efforts to mitigate any claim or liability, then notwithstanding anything
  
                                                                  52


else to the contrary contained in this Agreement, the indemnifying party shall not be required to indemnify any indemnified
party for any portion of a Loss that could reasonably be expected to have been avoided if the indemnified party had made such
efforts.

      11.2. Exclusivity . After the Closing, except as expressly set forth in Sections 4.8 and 8.2, and except in the case of fraud or
willful breach, this Article 11 will provide the exclusive remedy for any breach of representation or warranty set forth in this
Agreement or otherwise arising out of this Agreement or the P&A Transaction; provided that the foregoing shall not prevent a
party from obtaining specific performance, injunctive relief or any other available non-monetary equitable remedy.

     11.3. A s-Is Sale; Waiver of Warranties . Except for representations and warranties expressly set forth in this Agreement,
Purchaser acknowledges that the Assets and Assumed Liabilities are being sold and accepted on an “AS-IS-WHERE-IS” basis,
and are being accepted without any representation or warranty. As part of Purchaser’s agreement to purchase and accept the
Assets and Assumed Liabilities AS-IS-WHERE-IS, and not as a limitation on such agreement, TO THE FULLEST EXTENT
PERMITTED BY LAW, SELLER HEREBY DISCLAIMS AND PURCHASER HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES AND RELEASES ANY AND ALL ACTUAL OR POTENTIAL RIGHTS PURCHASER MIGHT HAVE
AGAINST SELLER OR ANY PERSON DIRECTLY OR INDIRECTLY CONTROLLING SELLER REGARDING ANY FORM OF
WARRANTY, EXPRESS OR IMPLIED, OF ANY KIND OR TYPE, RELATING TO THE ASSETS AND ASSUMED LIABILITIES
EXCEPT THOSE REPRESENTATIONS AND WARRANTIES OTHERWISE SET FORTH IN THIS AGREEMENT. SUCH
WAIVER AND RELEASE IS, TO THE FULLEST EXTENT PERMITTED BY LAW, ABSOLUTE, COMPLETE, TOTAL AND
UNLIMITED IN EVERY WAY. SUCH WAIVER AND RELEASE INCLUDES TO THE FULLEST EXTENT PERMITTED BY
LAW, BUT IS NOT LIMITED TO, A WAIVER AND RELEASE OF EXPRESS WARRANTIES (EXCEPT THOSE
REPRESENTATIONS AND WARRANTIES OTHERWISE SET FORTH IN THIS AGREEMENT), IMPLIED WARRANTIES,
WARRANTIES OF FITNESS FOR A PARTICULAR USE, WARRANTIES OF NON-INFRINGEMENT, WARRANTIES OF
MERCHANTABILITY, WARRANTIES OF HABITABILITY, STRICT LIABILITY RIGHTS AND, EXCEPT AS OTHERWISE
SET FORTH IN THIS AGREEMENT, CLAIMS OF EVERY KIND AND TYPE, INCLUDING BUT NOT LIMITED TO CLAIMS
REGARDING DEFECTS WHICH WERE NOT OR ARE NOT DISCOVERABLE, ALL OTHER EXTANT OR LATER CREATED
OR CONCEIVED OF STRICT LIABILITY OR STRICT LIABILITY TYPE CLAIMS AND RIGHTS.

                                                            ARTICLE 12

                                                         MISCELLANEOUS

      12.1. Survival . (a) The parties’ respective representations and warranties contained in this Agreement shall survive until
the second (2nd) anniversary of the Closing Date; provided , however , that (i) each of the representations and warranties of 
parties set forth in Sections 5.1 and 6.1 shall survive until the sixth (6th) anniversary of the Closing Date and (ii) the 
representations and warranties set forth in Sections 5.9 and 5.11 shall survive until the expiration of the applicable statute of
limitations, and thereafter neither party may claim any Loss in
  
                                                                  53


relation to a breach thereof (each such specified period, a “ Survival Period ”); provided ,further , that the claims set forth in
any claim for indemnity made by an indemnified party on or prior to the applicable Survival Period shall survive until such claim
is finally resolved. The agreements and covenants contained in this Agreement shall not survive the Closing except to the
extent expressly contemplating performance thereafter.

           (b) No claim based on any breach of any representation or warranty shall be valid or made unless notice with respect
thereto is given to the indemnifying party in accordance with this Agreement.

      12.2. Assignment . Neither this Agreement nor any of the rights, interests or obligations of either party may be assigned by
Seller and FBC, on the one hand, or Purchaser, on the other hand, without the prior written consent of the other parties, and any
purported assignment in contravention of this Section 12.2 shall be void; provided , however , that Purchaser may assign to one
or more of its Affiliates the right to purchase the Assets and assume the Assumed Liabilities (provided that such assignment
would not delay or impede the consummation of the transactions contemplated by this Agreement); and provided ,further ,
that no such assignment shall relieve Purchaser of its obligations hereunder.

      12.3. Binding Effect . This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns. Prior to the Closing, FBC shall not permit Seller, without
the consent of Purchaser, to consolidate with or merge with or into any Person unless (a) Seller is the continuing Person or 
(b) the resulting or surviving entity expressly assumes by supplement to this Agreement all of the obligations of Seller under 
this Agreement and has equal or greater financially capability to that of Seller to perform its obligations hereunder.

     12.4. [Reserved.]

      12.5. Public Notice . Prior to the Closing Date, neither Purchaser nor Seller shall make or cause to be made any press release
for general circulation, public announcement or disclosure or issue any notice or general communication to employees with
respect to any of the transactions contemplated hereby without the prior written consent of the other party (which consent
shall not be unreasonably withheld, conditioned or delayed). Purchaser and Seller each agree that, without the other party’s
prior written consent, it shall not release or disclose any of the terms or conditions of the transactions contemplated herein to
any other Person (other than any bank Regulatory Authority). Notwithstanding the foregoing, each party may make such public
disclosure as, based on the advice of its counsel, may be required by law, stock exchange rules or as necessary to obtain the
Regulatory Approvals.
  
                                                                   54


     12.6. Notices . All notices, requests, demands, consents and other communications given or required to be given under
this Agreement and under the related documents shall be in writing and delivered to the applicable party at the address
indicated below:
  

          If to Seller or FBC:      Flagstar Bank, FSB
                                    c/o Flagstar Bancorp, Inc.
                                    5151 Corporate Drive
                                    Troy, Michigan 48098
                                    Attention: Chief Financial Officer
                                    Fax: (248) 312-6833

          With a copy to:           Kutak Rock LLP
                                    1101 Connecticut Avenue, N.W.,       Suite 1000
                                    Washington, D.C. 20036
                                    Attention: Jeremy T. Johnson
                                    Fax: (202) 828-2488

          If to Purchaser:          PNC Bank, National Association
                                    c/o The PNC Financial Services Group, Inc.
                                    One PNC Plaza
                                    249 Fifth Avenue
                                    Pittsburgh, Pennsylvania 15222-2707
                                    Attention: Mergers & Acquisitions Department 
                                    Fax: (412) 762-6238

          With a copy to:           Wachtell, Lipton, Rosen & Katz 
                                    51 West 52nd Street
                                    New York, New York 10019
                                    Attention: Lawrence S. Makow
                                    Fax: (212) 403-2000

or, as to each party at such other address as shall be designated by such party in a written notice to the other party complying
as to delivery with the terms of this Section 12.6. Any notices shall be in writing, including telegraphic or facsimile 
communication, and may be sent by registered or certified mail, return receipt requested, postage prepaid, or by fax, or by
overnight delivery service. Notice shall be effective upon actual receipt thereof.

     12.7. Expenses . Except as expressly provided otherwise in this Agreement, each party shall bear any and all costs and
expenses that it incurs, or that may be incurred on its behalf, in connection with the preparation of this Agreement and
consummation of the transactions described herein, and the expenses, fees, and costs necessary for any approvals of the
appropriate Regulatory Authorities.

     12.8. Governing Law . This Agreement shall be governed by and interpreted in accordance with the laws of the State of
New York applicable to agreements made and entirely to be performed in such state and without regard to its principles of
conflict of laws. The parties hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on
any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in any
federal or state court sitting in the borough of Manhattan, New York City.
  
                                                                  55


      12.9. Waiver of Jury Trial . The parties hereby waive, to the fullest extent permitted by law, any right to trial by jury of any
claim, demand, action, or cause of action (i) arising under this Agreement or (ii) in any way connected with or related or 
incidental to the dealings of the parties in respect of this Agreement or any of the transactions contemplated hereby, in each
case, whether now existing or hereafter arising, and whether in contract, tort, equity or otherwise. The parties hereby further
agree and consent that any such claim, demand, action or cause of action shall be decided by court trial without a jury and that
the parties may file a copy of this Agreement with any court as written evidence of the consent of the parties to the waiver of
their right to trial by jury.

     12.10. Entire Agreement; Amendment . (a) This Agreement contains the entire understanding of and all agreements 
between the parties hereto with respect to the subject matter hereof and supersedes any prior or contemporaneous agreement
or understanding, oral or written, pertaining to any such matters, which agreements or understandings shall be of no force or
effect for any purpose; provided , however , that the terms of any confidentiality agreement the parties hereto previously
entered into shall, to the extent not inconsistent with any provisions of this Agreement, continue to apply until the Closing.

           (b) This Agreement may not be amended or supplemented in any manner except by mutual agreement of the parties
and as set forth in a writing signed by the parties hereto or their respective successors in interest. The waiver of any beach of
any provision under this Agreement by any party shall not be deemed to be waiver of any preceding or subsequent breach
under this Agreement. No such waiver shall be effective unless in writing.

     12.11. Third-Party Beneficiaries . Except as expressly provided in Section 11.1, this Agreement shall not benefit or create 
any right or cause of action in or on behalf of any Person other than Seller, FBC and Purchaser.

     12.12. Counterparts . This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

      12.13. Headings . The headings used in this Agreement are inserted for purposes of convenience of reference only and
shall not limit or define the meaning of any provisions of this Agreement.

     12.14. Severability . If any provision of this Agreement, as applied to any party or circumstance, shall be judged by a court
of competent jurisdiction to be void, invalid or unenforceable, the same shall in no way effect any other provision of this
Agreement, the application of any such provision and any other circumstances or the validity or enforceability of the other
provisions of this Agreement.

      12.15. Interpretation . When a reference is made in this Agreement to Articles, Sections or Exhibits, such reference shall be
to an Article, Section of or Exhibit to this Agreement unless otherwise indicated. The Recitals hereto constitute an integral part
of this Agreement. References to Sections include subsections, which are part of the related Section ( e.g. , a section numbered
“Section 5.13(a)” would be part of “Section 5.13” and references to “Section 5.13” 
  
                                                                56


would also refer to material contained in the subsection described as “Section 5.13(a)”). The table of contents, index and
headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they
shall be deemed to be followed by the words “without limitation.” The phrases “the date of this Agreement,” “the date hereof” 
and terms of similar import, unless the context otherwise requires, shall be deemed to refer to the date set forth in the Preamble
to this Agreement.

     12.16. Specific Performance . The parties hereto agree that irreparable damage would occur if any provision of this
Agreement were not performed in accordance with the terms hereof (and, more specifically, that irreparable damage would
likewise occur if the P&A Transaction was not consummated), and, accordingly, that the parties shall be entitled, without the
necessity of posting a bond or other security, to seek an injunction or injunctions to prevent breaches of this Agreement or to
enforce specifically the performance of the terms and provisions hereof (including the parties’ obligation to consummate the
P&A Transaction, subject to the terms and conditions of this Agreement).
                 [End of Agreement; Remainder of page intentionally left blank; Signature page follows]
  
                                                           57


     IN WITNESS WHEREOF , the parties hereto have caused this Agreement to be executed by their duly authorized officers
as of the date and year first above written.
  
                                                                        FLAGSTAR BANK, FSB

                                                                        By:   /s/ Paul D. Borja
                                                                        Name:  Paul D. Borja
                                                                        Title:   EVP & CFO 

                                                                        FLAGSTAR BANCORP, INC.,
                                                                        solely for purposes of Sections 7.6 and 7.9 and
                                                                        Article 12

                                                                        By:   /s/ Paul D. Borja
                                                                        Name:  Paul D. Borja
                                                                        Title:   EVP & CFO 

                                                                        PNC BANK, NATIONAL ASSOCIATION

                                                                        By:   /s/ David J. Williams
                                                                        Name:  David J. Williams
                                                                        Title: Executive Vice President
                                                                             Title:   Executive Vice President
  
                                                               58


                                                                                                                 EXECUTION COPY
                                               PNC Bank, National Association
                                                       One PNC Plaza
                                                      249 Fifth Avenue
                                               Pittsburgh, Pennsylvania 15222

                                                                                                           September 12, 2011       

Flagstar Bank, FSB
c/o Flagstar Bancorp, Inc.
5151 Corporate Drive
Troy, Michigan 48098
Attention: Chief Financial Officer

Ladies and Gentlemen:

     Reference is made to the Purchase and Assumption Agreement, dated as of July 26, 2011 (the “ P&A Agreement ”), by
and among Flagstar Bank, a federal chartered stock savings bank, organized under the laws of the United States (“ Seller ”),
PNC Bank, National Association, a national banking association, organized under the laws of the United States (“ Purchaser ”),
and Flagstar Bancorp, Inc., a Michigan corporation, solely with respect to Sections 7.6, 7.9 and Article 12 thereof. Capitalized
terms used herein but not otherwise defined shall have the respective meanings assigned to such terms in the P&A Agreement.

     Purchaser and Seller hereby agree as follows:

           1. For purposes hereof, “ New Customer ” shall mean a customer of a Branch who, during the period from
September 17, 2011 through the date on which Seller, in accordance with the terms and conditions of the P&A Agreement, 
begins to provide customers with “dual disclosure” documents that identify Purchaser and provide notice of the transactions
contemplated by the P&A Agreement, opens a new Deposit account or other new product with Seller which is to be converted
to Purchaser at Closing. For avoidance of doubt, Seller shall provide to Purchaser the names and addresses of any New
Customers in a timely manner that is reasonably sufficient to allow Purchaser to provide such New Customers with any
notification required by applicable law or the terms of any agreement between Seller and any such New Customer as may be
required in connection with the transactions contemplated under the P&A Agreement not later than thirty (30) calendar days 
prior to the Closing Date.

           2. Nothing in this letter agreement is intended to, nor shall it, modify the P&A Agreement in any manner other than as
specifically provided herein. This letter agreement constitutes the entire agreement between the parties hereto relating to the
matters described above. The provisions of Article 12 of the P&A Agreement are incorporated herein by reference and shall be
deemed applicable to this letter agreement mutatis mutandis . This letter agreement may only be amended by mutual agreement
in writing.

                                         [Remainder of page intentionally left blank]


     In witness whereof, this letter agreement has been duly executed by the parties hereto as of the date first above written.
  
                                                                              FLAGSTAR BANK, FSB

                                                                              By:  /s/ Paul Borja
                                                                                   Name: Paul Borja
                                                                                   Title: Executive VP & CFO 


                                                                              PNC BANK, NATIONAL ASSOCIATION

                                                                              By: /s/ Christine Shambach
                                                                             By:  /s/ Christine Shambach
                                                                                  Name: Christine Shambach
                                                                                  Title: Vice President




                                                 PNC Bank, National Association
                                                         One PNC Plaza
                                                        249 Fifth Avenue
                                                 Pittsburgh, Pennsylvania 15222

                                                                                                                October 27, 2011 

Flagstar Bank, FSB
c/o Flagstar Bancorp, Inc.
5151 Corporate Drive
Troy, Michigan 48098
Attention: Paul Borja, Chief Financial Officer

Ladies and Gentlemen:
     Reference is made to the Purchase and Assumption Agreement, dated as of July 26, 2011 (the “ P&A Agreement ”), by
and among Flagstar Bank, a federal chartered stock savings bank, organized under the laws of the United States (“ Seller ”),
PNC Bank, National Association, a national banking association, organized under the laws of the United States (“ Purchaser ”),
and Flagstar Bancorp, Inc., a Michigan corporation, solely with respect to Sections 7.6, 7.9 and Article 12 thereof. Capitalized
terms used herein but not otherwise defined shall have the respective meanings assigned to such terms in the P&A Agreement.

     Purchaser and Seller hereby agree as follows:
           1. Notwithstanding anything in Section 4.3 of the P&A Agreement to the contrary, for a period of ninety (90) calendar 
days following the Closing Date, Seller shall transfer to Purchaser all FedWires received by Seller for credit to accounts
constituting Deposits, with such transfers being made by Seller each Business Day promptly upon Seller’s receipt of any such
FedWire. For the avoidance of doubt, the foregoing obligation to transfer FedWires to Purchaser shall replace Seller’s
obligation under Section 4.3 to return such FedWires to the originator with an indication of Purchaser’s correct Wire Room
contact information and an instruction that such wire should be sent to Purchaser; however, Seller’s other obligations under
Section 4.3 of the P&A Agreement shall not be modified in any way by the foregoing. 

           2. Nothing in this letter agreement is intended to, nor shall it, modify the P&A Agreement (including Section 4.3 
thereof) in any manner other than as specifically provided herein. This letter agreement constitutes the entire agreement
between the parties hereto relating to the matters described above. The provisions of Article 12 of the P&A Agreement are
incorporated herein by reference and shall be deemed applicable to this letter agreement mutatis mutandis. This letter agreement
may only be amended by mutual agreement in writing.

                                         [Remainder of page intentionally left blank]


     In witness whereof, this letter agreement has been duly executed by the parties hereto as of the date first above written.
  
                                                                              FLAGSTAR BANK, FSB

                                                                              By:  /s/ Paul Borja
                                                                                   Name: Paul Borja
                                                                                   Title: Executive VP & CFO 
  
  

                                                                              PNC BANK, NATIONAL ASSOCIATION

                                                                              By:  /s/ Christine Shambach
                                                                                   Name: Christine Shambach
                                                                                   Title: VP